Viewpoint0232 which level is used by apps that check for "integrity", like some banking apps do: is it device integrity or strong integrity?
The vast majority of apps, including Google Wallet, only require MEETS_DEVICE_INTEGRITY since devices running versions older than Android 11 (API level 30) cannot pass MEETS_STRONG_INTEGRITY which needs hardware-backed attestation. This accounts for approximately 33% of devices running Google's certified Android (very rough figure).
Viewpoint0232 f the answer is BASIC only, would the developers consider implementing a fix to meet DEVICE integrity as well? it seems to be doable?
Yes, GrapheneOS only passes MEETS_BASIC_INTEGRITY, but no, GrapheneOS will not spoof MEETS_DEVICE_INTEGRITY. You can read more about why here and here.
Viewpoint0232 if the developers are opposed to it, is it because of technical reasons (e.g. apps now require STRONG integrity so passing only DEVICE integrity is pointless) or political reasons (e.g. "we don't want to 'spoof' anything, hardware attestation is available for developers and if they insist on blocking GrapheneOS it's not our fault")?
Technical reasons: It is not possible to spoof MEETS_STRONG_INTEGRITY, and as is noted in the sources I linked above, Google also has the ability to trivially block attempts at spoofing MEETS_DEVICE_INTEGRITY using GPU fingerprinting. Google would certainly block spoofing it if GrapheneOS’ 250k+ users suddenly started doing it on a large scale. Purely politically, it would also undermine the GrapheneOS developers’ argument that the Play Integrity API is anti-competitive and illegal.
I speak for myself.