What they want is to get rid of apps like YouTube Vanced that are making them lose money (and other Play Store apps)
Plus, you are not required to do that, you can just stick to Google Play and trust what Google approves there. But no need to lock down others because of your recklessness.
Why the hell can't I use my rooted device for payments? It's my goddamn money at risk.
Plus the whole "banks need to protect you by ensuring your device" is stupid when cards are protected only by a PIN, and the app also requires some form of biometry to unlock it, which is to encrypt the underlying tokens. Banks should protect your money on their end, with clients having their responsibility to keep safe their stuff, whether that's their card or phone. It's a stupid premise itself, and it's lazy engineering.