You're asking why a government, that is already known for massive surveillance, wants devices that nearly 100% of the population owns to be completely unencrypted?
relevant lesser known fact - 3G crypto is broken. In such a way that is a bit suspicious - a couple terabyte-sized rainbow table will crack it.
I found a guy with the tables at one point, it's buried deep on the internet -- but this for example -- https://ieeexplore.ieee.org/document/6645525
There's no indication government is behind this and given that Google is rolling out tools now to protect against it this was probably always doable and just never prioritized.
Said government isn’t too keen on its own employees being vulnerable in this way, so it’s not as cut and dry as you make it out to be.
Hanlon’s razor applies here.