Yes, that's the essence of the problem. Android TV devices have to use Google's launcher as the default, or they have to go fully on their own, without Google services, like a FireTV device.
Well, it seems that Google (and various other corporations) are finally entering their endgame and are showing their true colors. I am eager to find out if the world can fight back meaningfully.
Here's hoping. {raises glass}
The only way to solve this is to break up Google (or rather Alphabet) but I don't see this happening. Anti-trust got way too soft.
Why do you think that breaking Google apart would make the portions that don't directly receive money from advertisements less likely to sell ad space?