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My Android TV has a non-default launcher with no ads, and I can sideload apps to get things like Youtube with sponsorblock baked in. Going to Apple's locked down system seems like a huge downgrade to me.
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Depends on one’s needs. The overwhelming majority of Android TV boxes and integrated Android TVs use extremely anemic hardware that will choke on any content that falls beyond hardware acceleration support for their SoCs. So fine for YouTube and Netflix probably, but not so great for a personal Plex server full of HDR content.
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I have isponsorblocktv running on my home server that skips YouTube segments automatically.

Also running side-loaded Stremio with torrenting enabled so I can stream Big Buck Bunny.

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The reason will be that the older, less expensive Apple TV 4k will no longer be available. There's really no other reason. This is a price hike, plain and simple.
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I need a new ATV to replace the ancient HD one that's dying in our living room. I've been putting it off because of laziness and now I can't get one directly from Apple if I don't want this too expensive, Siri-infested thing with all its microphones that I'll never use. Dammit!
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I think you could still get the previous model from third-party stores the next few days.
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I agree, for me the single biggest benefit of AppleTV over any other streaming OS is that it’s genuinely a fast user interface. I lose my mind using all these dongles and built in OS with how slow they are
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But more conversational AI, that doesn't inspire you?
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You can disable ads and recommendations in AndroidTV. Mine only shows a row of installed apps, and I rarely even see the main interface because I have the most common apps available from the remote.
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