> What? Google are dictating your technology solution here and penalising you if you don't do exactly what they want.
Google is protecting the quality of the UX for its product (web search). If you choose to a "technical solution" that makes search results bait-and-switch for mobile users, it treats your search results as less-likely-to-be-valuable-to-users, because they are.
> This is bad news for consumers
Its good news for mobile users of Google search. What consumers are you talking about, and how is it "bad news" for them?
> and web masters
Its bad news for bad web masters, sure.
> and they're dressing it up as if it's the developers fault when a separate site is a perfectly reasonable solution.
They aren't penalizing developers for using a separate mobile site, they are penalizing you for redirecting all links to the regular site to the homepage of the mobile-specific site. Redirecting from specific pages on the regular site to the specific, relevant content on the mobile site is not penalized.
> It's not Google's job to dictate our solutions.
No, its Google's job to assure that their search engine provides relevant, quality results to their users, which is why they penalize sites that do things which would result in users not get relevant, quality results.