I used to regularly backup and restore an Android phone after rooting it, because I was updating carrier files and testing out different releases. I’m sure that the capability to take a backup and restore it is available to spyware software developers. If I have competent software in-hand to use the root access to copy over non-HSM internals, then this argument is void.
And for non-technical folks, the same spyware devices that police use to make perfect replicas could just as easily restore them with a spyware infection.
They’d lose HSM-stored things like fingerprints and NFC payment tokens, but people shrug off things like that and just go set it up again or enter their passwords when a pop up appears.
If this Knox throws up an unavoidable, non-technical warning in that scenario, that openly cautions them not to enter any passwords and to take their phone to the authorities, then I will happily accept that things are better than I expected for Android today.