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It undercuts Apple's argument that they "need" to have this limitation in place, since clearly their largest competitor doesn't "need" to do it.

Subscription media apps on iOS are allowed to use external payment processing.

A hypocritical position would be having users do initial sign-up (including creation of an Apple ID with billing information) in-app on Android.

They would not and do not apply.

Dueling monopolies share only fleeting similarity with the appealing properties of markets.

It's not about the TOS, it's about Apple taking the position that Google's requirement is anticompetitive in the Play Store but that Apple doing the same thing (actually worse, since Google allows third-party stores to be installed) in its own App Store is not.

That can be used against them in an antitrust proceeding...in US courts. I don't know how the EU handles judicial estoppel since AFAIK it's only a feature of the UK-originated common law system.

When has Apple argued that Google's Play Store is anticompetitive?

Apple's more likely to argue "Google's TOS lets us do X, our TOS doesn't" or something along those lines.