A different Wallet/Pay implementation is a possible outcome, but I'm thinking of a bigger picture where Android phones are more like PCs: no non-unlockable bootloaders, no remote attestation anywhere, barriers to root detection at the OS level, third-party ROMs encouraged.

The early days of Android were like that. I wonder if things had developed along that path, would we have a paradise for power users? A security nightmare for mainstream users? Both? Neither?