A lot of people still don't see how the operating system as a whole is open source, not having properly supported open source apps is not the best, but while we can make apps and/or update the aosp versions, we can't make an operating system...
You'll hear that it's been happening since years, and while a lot of us tried to upstream some of our enhancements/changes hardly any of them got accepted ( or anyone is actively working on those apps to review them properly ).
This changes nothing, we'll keep using our forks that didn't see a single change from Google in years at this point :)
Android APIs are stable and an app will keep working until Google decides to bump the min SDK version in Android itself.
The APIs a Google app uses are the same as any other app.
Unless the app is privileged ( = can use system APIs ) there's no difference in capabilities.
Yes. That is the problem I am referring to. They can bump the api version, removing the non-privileged APIs the AOSP stuff used, and move the implementation of the new privileged API into a proprietary blob.
This is how location services work. Location has an obvious local-only fallback, but it is broken in practice. I imagine they can break phone calls/sms/rcs equally badly using the same technique.
All oems or rom makers are able to make whatever apps they want system apps. So even if this is being done, Google dialer isn't getting access to something others cannot.