Hardware AV1 decoding is available on some Android devices right now, and will ship with a lot more over the course of the year. So it seems the perfect time to ship an AV1 option behind an opt-in setting, which is what they've done. If you don't have hardware support and it's not worth the battery drain then you don't have to select it and there's no way they're removing H.264 support anytime soon.
Getting it into the hands of the top 5 Samsung devices would probably cover a significant market share (not to mention getting it into all Apple phones/tablets).
It is not like the hardware part of the die is free. AV1 has comparatively higher decoding requirement even in hardware.
New codecs are always chicken-and-egg -- you need to have content available before the hardware encoders/decoder silicon gets produced and then trickles down to the phones.
edit: looks like it, at least for recent snapdragon phones:
Snapdragon 820: launched early 2016
Snapdragon 660: announced on May 9, 2017
Not saying that all phones made after 2017 will have it, but there are mid range phones on sale that do.
Or will Youtube and Netflix force AV1 upon everyone where if you want high quality HDR or 4K Content you will require AV1.
I sure hope so!
Again AV1 is not Patent free either.
It's also just easier for Netflix to keep the data in more formats, because they have far, far less data than Youtube.