This is absolutely unacceptable. That's like you having to submit your personal details to Microsoft in order to just run a program on Windows. Absolutely nuts and it will not go as they think it will.
How will it go? Where are people going to go? People who draw a hard line on this can’t go to iOS for more freedom. Linux phones aren’t ready for prime time. So what’s left? Going back to a flip phone that doesn’t even have the capability of running apps in the same class?
It could also make jailbreaking more commonplace, which on the Android side has died down in recent years because sideloading is enough for most users.
I don't think the average user feels like they are really missing anything, which makes it a hard sell.
I definitely fly less now, because I am tired of the Orwellian circus at the airports. I guess same mechanism will reduce my smartphone use