taraf
The reason Microsoft wants you to have a newer device is so automatic encryption can happen - and when it does, it will automatically upload your recovery key to your Microsoft account. Similar to how Apple uploads your key to iCloud.
Where I work we do enforce this through Intune policies and such but we redirect it to our Entra ID tenant so admins can access the recovery key(s) when needed. However, we can force it on devices even if it doesn't 100% meet the modern standby, etc requirements.
Portable devices are more important to encrypt as they have a higher likelihood of getting stolen.
However, non enterprise users should have a choice. I wasn't too happy when my old Surface Pro 3 was encrypted without my knowledge. It has a Microsoft account because I had to install a new version of Office on it (you have to have a Microsoft Account to install Office now.) When it crapped the bad and the encryption broke after some Windows Update, I was able to recover as it did keep the recovery key in my online account.