"Block[ing] every Android app whose developer hasn't registered with Google, signed their contract, paid up, and handed over government ID. Every app and every device, worldwide, with no opt-out"
...would be "really bad" in my view.
Which is probably exactly why they worded it that way, despite knowing fully well they are (rather blatantly) lying. They literally explained how to avoid it themselves further down below, after you've already been angered.