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As someone who uses root (not at the moment but plans to) as I believe in owning my devices, fully, this is horrible. We still need to oppose this.
I know right? The article touches on this:
Google said the inspiration for the original Web Integrity project was Android's Play Integrity API, which already scans your phone for root privileges and denies access to things
^^^ this should have never, ever been a thing!
That is just standard and a completely sensible security measure for preventing people from tampering with an application. It cannot replace proper, server-side security measures but is a big step. Especially for stuff like banking applications.