You're actually not free to do that, because of arbitrary limitations created to siphon more money from your pocket.

And I agree that number 2 is worse, but it doesn't mean that phones being locked is chill so long as banks give you a Windows app.

No, it's still bad. They're general computation devices. I don't care what anyone says - they're not a washing machine. They're indistinguishable in hardware from any other general purpose computer.