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>What's with the decision to move to another app anyway?

Someone gets promoted for launching and making "impact".

>The only thing that they should do is literally nothing.

That's not "making impact". You can't get promoted for that. In fact, that's how you become a Xoogler.

Health Connect is to Google Fit like HealthKit is to Health app. Health Connect is just the database basically. Fit is one of the many apps that will use Health Connect.

It could be to avoid regulatory pressure. The tide is changing and this could be a preventive move.

If you just provide a database, you don't compete with Health apps.