The calculus here is more grey than it seems. 'Plant based leather' is largely plastic, while the leather industry (especially around cheap accessories) is made from meat industry byproducts. The hides would be destroyed/trashed otherwise. There's also the durability and biodegradable aspect of leather, over plant-based (let's not even talk about 'vegan leather', which is just vinyl).

Not to say that the leather industry doesn't still contribute money to the meat industry, just that this change reads more as greenwashing than an upgrade.