I'm lucky my banking app works (GrapheneOS), as it's now requiring 2FA with the app anytime I login on the browser. Can't use an actually secure form like TOTP. At least they now allow passwords over 8 characters (yes, serious).
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Can you compile your own OS from source for an iPhone and install it yourself? I don't think so.
I have done that with my non-rooted android, and I can do anything I want with my phones through the powers of open source software.
Rooting is unnecessary now and that's a good thing.
You can't do that without unlocking the bootloader, and that alone will trip "root detection" (Play Integrity).
Some apps take it further and won't run if you enable Developer Options! (Or have any number of "hacking apps" installed, such as autotap apps that don't even need root.)
Yes, I am aware of how it works. Unlocking the bootloader is not the same as rooting, and all my apps work just fine.
If they work with an unlocked bootloader then they would almost certainly also work fully rooted, with the advantages that brings (such as actual working app+data backups, limiting max battery charge, better automation possibilities with apps like Tasker, etc)
I'd much rather switch banks than give up rooting my phone.
Who cares if it's necessary? If people want to do it, they should be able to, without punishment.
Well you can, and there is no punishment, so you should be happy.
I imagine you probably think "punishment" is that some bank won't let you use their app on a rooted phone. That is not a punishment, that's the bank implementing the security that they deem necessary for access to their software, and is likely part of a license agreement that you agreed to by using it. You have no default entitlement to have free use of the software that anyone else produces unless the software developer's license states that you do.
Actual punishment would be if your phone gets bricked by the OEM for rooting it, or government authorities fine or arrest you for rooting.
Rooting is always necessary, you can't convince me otherwise, imagine not having root permissions in your Windows, Linux or macOS machine...
Without "rooting" capabilities we wouldn't have custom firmware for tech that is quite locked (like the PSP, Vita, 3DS and whatever OS they use), emulation would not be the same.
Heck, even some iOS versions can be jailbroken yet, I cannot conceive a world where iOS is less locked than Android.
You need to be the one who decides how your hardware is managed.