Nothing is wrong. They just don't use MTE yet, they probably have other priorities. They wanted to save some costs until they will use MTE, so they removed some hardware acceleration and downgraded the GPU. Simple as that.
AFAIK the other Pixel devices, going back to the 8, do use MTE in the stock OS. Some MTE features are only enabled when "Advanced Protection" is turned on in the OS settings, but the stock OS on those devices does make use of MTE. In the Android documentation, MTE is explicitly called out as one of the protection features enabled in the Advanced Protection mode.
So, I don't think it's accurate to say they don't use it yet. They were using it, and then they stopped. I think that's one of the reasons the linked GOS thread says they're concerned that "MTE may actually be broken due to CPU errata".
AFAIK the other Pixel devices, going back to the 8, do use MTE in the stock OS. Some MTE features are only enabled when "Advanced Protection" is turned on in the OS settings, but the stock OS on those devices does make use of MTE. In the Android documentation, MTE is explicitly called out as one of the protection features enabled in the Advanced Protection mode.
So, I don't think it's accurate to say they don't use it yet. They were using it, and then they stopped. I think that's one of the reasons the linked GOS thread says they're concerned that "MTE may actually be broken due to CPU errata".