Exactly.

What the attestation system would do is give some government agency de facto control over which OSs could be installed on phones.

Right now, using GrapheneOS and being outside of corporate attestation chains just means that you can't use the NFC payment system. It could very well be that every major commercial service would deny you access if you couldn't pass an attestation verification via some browser API.

An example would be if age verification were a thing, they could 'think of the children' argue their way into only allowing OSs with age verification systems which are approved by the government to access social media or any website that would be considered 18+.

EU countries have already tried attacking GrapheneOS as a tool of criminals. It doesn't seem like much of a stretch to see how they would refuse to allow 'the criminal OS' to be part of their attestation chain. Or if chat control passes, only devices that implement the mass surveillance spyware would be allowed to be attested. The government wouldn't allow non-compliant operating systems to pass their tests.

The point of an attestation chain is to provide control over which devices are allowed to be verified and to use that verification status to gate access to services.

recently changed my bank.

i refused facial recognition so they simply fixed an irl appointment.
Councillor i met was an old user of Cyanogen.
Their app works without boogle services and that too was one of the reasons for my choice.

I'm guessing (and hoping too) that some banks won't be closing their virtual doors to nonBoogled people

But attestation is already "a thing"!! These companies are just asking for a more democratic system. Might not be the best idea ever, but it's at least better than Google's monopoly.