But I'm afraid that this is security theater and the true goal is to protect revenues by making it hard or impossible to install apps that impact Alfabet bottom line (eg third party YouTube clients.)
It's not just them. Every other SaaS, from banks to media providers to E2EE[0] chat clients to random apps whose makers feel insecure, or are obsessed with security [theater] best practices, just salivate at the thought of being able to check if you're a deviant running with root or debugging privileges, all because ${complex web of excuses that often sound plausible if you don't look too closely}. There's a huge demand for device attestation, remote or otherwise.
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[0] - End-to-end Enshittified.
It solves the 'smartest bear / dumbest human' overlap design concern in this situation.
But I guess not reading the TOS is another wide problem, also fueled by companies like Google.
relatively easy for devs, but hard to scale for scammers
Developers want developer phones, non-developers want safe phones that are resistant to their and their shitty bank's goddamn fucking stupidity. (Because banks UX is so so so so bad that most of the time the phishing attack seems like just a normal part of the bank's UX.)
But it's hard to separate people on a webshop, if a shop runs out of non-developer phones they'll happily sell the developer phones to non-developers.