I would buy the argument that this is a performance change, had they not already shipped with it on before. Encryption on android is not usually a large bottleneck (measurable but not great) on such devices. I call BS on any claims of this being perf-motivated.
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Have you used one of their new products launched last quarter? They are horribly slow.
Not due to encryption
Your comment said "is not usually a large bottleneck (but it is measurable)" which implies that there is a performance impact. If they are trying to eek out as much performance as they can from an already terribly slow device then it stands that it could be for performance reasons.