It's worth asking, but I think there's an answer: they want the OS to be transformed into an interface to their cloud where recurring revenue is easier. To do that, they need to make it more like a mobile OS and more locked down. TPM helps this.
Why didn't that go further? Presumably virtually any x86-64 box currently in circulation would be fast enough to run a VM running a full copy of 32-bit XP/Win7/Win10, or even a full carousel (or download store) of DOS and early-windows releases. It could be the most compatible Windows ever, solving the weird "64-bit systems can't run some 16-bit apps" gotcha and perhaps allowing some way to bridge in support for devices that can only be driven by old 32-bit XP drivers.
Given the free Win 7/8->10->11 upgrade path, almost every end user who'd want a Windows license probably already has one. This leaves enterprise licensing and computer manufacturers (laptops, mini-PCs, desktops), who wouldn't care about this because they'll have newer hardware anyway.
Why do you feel the need to defend a convicted monopolist for engaging in user hostile behavior?