Defaulting to exhaustive pattern matches is correct, it’s by far the most frequent case (which is why essentially every modern language does that); being able to prevent exhaustive matching is useful for libraries; and using a private subclass is a completely obvious way to implement that in Java.
See private extensible variants for the same capability in OCaml. Or the non_exhaustive attribute in Rust. Or the nonexhaustive attribute in Swift (or alternatively opting into library-evolution which reverses the defaults).
This will nullify the advantage of being able to treat sealed classes as algebraic datatypes by using the exhaustiveness check.
I feel this is fundamentally a perspective issue. If this is a problem, also consider why people want sealed classes in the first place. It's always a tradeoff and you can also always fork or propose your own improved version of the concept and see if it has enough merit to gain traction. There's a million other footguns in the language that needs similar scrutiny, I'm just happy java isn't C/C++.
In some cases you want "default" handling, in other cases it's a runtime detection of a code issue. E.g. you could add a "fallback" case which is the same as "default" yet if your code doesn't exhaustively handle all sealed class cases won't compile. This would still create a fallback, if your sealed class is widened later on, but still allow you to error out if it's already the case right now.
That is a false dichotomy. Some enumerations have reasons to likely change in the future, others (most) either have no such thing or their changing would be so impactful to the system it needs to be signaled loudly.
That’s really no different than any other type information.
> It's always a tradeoff and you can also always fork or propose your own improved version of the concept
You are the person asserting that the concept as defined is incorrect.