That's simple. Things like this happen when people act without principles. It is like patching software without taking one step back to understand the underlying issues.
The underlying issue with airtags is supposed to be that people can use them to track other people. Well, rather than try to take a step back and understand what the problem is, Apple decided to just jump in and start figuring out some heuristics that will prevent most of the tracking by sacrificing the least usability.
The result is the product becomes unusable while tracking issue isn't solved either.
IMO tracking issue isn't really Apple's problem. A person that wants to track another person has a huge number of tools at their disposal. Go to any large online shopping platform like amazon or aliexpress and you can find hundreds if not thousands tracking tools. Some much better than airtags (cheaper and not retroactively traceable by Apple). Tracking should be solved legally and by educating people that tracking people without their permission is illegal and they potentially can face criminal charges, regardless of the method they use to track another person.
Imagine car makers reacted to first car accidents by putting pillows around the cars rather than figuring out we need legal moves (road rules, drivers licenses, car safety standards, infrastructure to separate flows of traffic, etc.)
There is a class of items that need to be restricted or nerfed because they are either inherently dangerous or they are of not much use except for committing crime or similar.
But there are also things that are very useful AND at the same time can be used to commit crimes.
I am not even talking about guns. Think kitchen knives. Knives are useful. Yes, we can live without them but having good sharp knives at home enhances our lives and makes it much easier to make good food.
Notice, knife makers do not make kitchen knives so that they are dull. They do not make them so short that you can't reach another persons heart. Instead, we know what the knives are for and we know that what you can't do is murder another person with it. Or murder them in any other way, regardless of the tool used.