Wanted to spy on my dog, ended up spying on TP-Link

It's not really going to be directly affected by that change I would expect. Most reverse engineering is on rooted devices & emulators anyway, which are already outside the bounds of those kinds of Google restrictions.

For the (less common) cases where you want to use a non-rooted device (e.g. using Frida by injecting it into the APK via gadget) it gets trickier, but I think in practice there will still be a way for developers to build & install their own APKs with developer mode enabled. This will be tightened, but removing that restriction would effectively make Android development impossible so it seems very unlikely - I think they will block sideloading on all non-developer devices only, or allow you to add your own developer cert for development or similar (all of which would probably be fine for development & reverse engineering, while still being a massive pain for actual distribution of apps).

The larger issue is device attestation, which _could_ make all rooted/non-certified devices progressively less practical, as more apps attempt to aggressively detect unmodified devices. Right now that's largely limited to big financial apps, and has some downsides (you get a bunch of complaints from all 3 GrapheneOS users, and it requires a bunch of corresponding server work to be reliable) but it could become more widespread.