Now they say he can't upgrade [that 'last ever version' thing didn't last, huh] ... I've not found a way around the current restrictions yet?
It's quite good at the moment, there are a flood of good second hand systems from businesses who are upgrading.
There's no problem with MS developing beyond their current systems. Indeed it feels like they go too far with backward compatibility. But lying (or putting in false requirements) in order to get hardware scrapped is just wrong -- do home users really need TPM2, seems more like a nice to have to me.
The reality is that most people will not repurpose a computer, they throw them out. Rarely (in UK) the device might make it to a computer recycling place. Heck, I've seen people throw out computers because the "you're low on disk space" warning came up.
After msft's experiences with Win10, they decided Windows wouldn't become more secure unless they enabled features by default. And the majority of high-impact features depend on a TPM.
I'd argue that home users do need these features in the current security environment. TPMs have been required in new devices since 2016, so people are more likely to have thrown out incompatible devices already (CPU/RAM if not disk)