Even something like GrapheneOS, in theory the best path to security and privacy and liberty, was falling way short even before this latest announcement from Google.
The problem lies partially in the app ecosystems, which embrace spyware and exploiting users (requiring all the worst Google APIs), and partially in governments, which will leverage any centralized organization like Google to gain control (EU chat control etc.).
The solution cannot be just a custom OS or an OS fork. In fact, ecosystem compatibility is toxic and slows down growth of real alternatives. There needs to be some wholly independent and decentralized offering.
The challenge is hardware compatibility and core services like digital IDs. Most apps should be solved by using a website instead.
These issues are especially important because the future is increasingly digital. Smart phones, smart glasses, smart watches, VR glasses, smart homes, and even brain implants. I don't want to live in a future where I'm either left behind or my whole life is controlled by Google/Apple/the government/etc.