I didn't know about this change, this is actually good news, it means no app can realistically rely on strong integrity as it will cut them from their user base.

I think you overestimate how far apps are willing to go for stupid reasons.

Also, there is still the DEVICE_INTEGRITY check that verifies the hardware side of things so if old devices have to be pushed, app developers still won't let you run their apps on LineageOS

I'm sure they are stupid but they already have some trouble to justify to their customers that they can't run the app on Android 11 so phasing out actual brand new devices that customers have is going to go a bit too far for them.

Massive gaming companies have already started using TPMs + secure boot to detect and ban players. Anyone who upgraded to Windows 11 without compatible hardware or who was/is still using Windows 10 cannot play these games. That was a few years ago when Windows 10 was still around.

It has happened and it probably will happen again. The EU is working on a wallet app that will be legally equivalent to an ID card, I imagine they'll rather have people stick to their plastic ID rather than risk accepting identity theft.