Color printers weren’t good enough for high-quality counterfeiting when Xerox introduced the encoding in the 1980s, and they’re less capable of it now that bills are improved, but counterfeiting doesn’t stop being a crime because the fake bills suck.
Also, if appeasing the Secret Service isn’t the real reason, why aren’t black and white printers printing gray dot codes? Since yellow dot encoding was introduced, the vast majority of office documents were churned out on BW printers. Seems like a big miss for mass surveillance.
The solid decision to stay out of that business was made when Jobs signed the deal with AT&T for the iPhone. Apple handles the device. AT&T handles the network. This ensured iPhone would not get bogged down by carrier software, branding, etc.
By contrast, Android launched on carrier devices, like the T-Mobile G1 and Verizon Droid, and Google has gotten deeper into those devices over the years, from app stores to messaging. Taking on the carrier role is in line with that creep and Google’s mission to access and use the world’s information.