If this is true, thry are only deceiving themselves for people that truly wants privacy and not those that just use what they see. The noncustodial wallets are existing without Google. Example is Electrum wallet that you can download on Electrum official website, while some other noncustodial wallets can be downloaded directly on their official websites and on GitHub. We do not need Google to use the apps.
This will enable phishing campaigns on an unprecedented scale.
Many people will lose their funds because they do not know where to download wallet APKs and verify PGP signatures.