Comment by jeroenhd

This is "protect the users from themselves" as-a-feature to prevent scammers from using malware to obscure their scams. Letting the user override the warning would make the entire feature useless.

Using overlay permissions, it's relatively simple to trick someone into transferring money by overlaying a different UI that the malicious app makes the user type or paste into. I believe blocking access to the app while such an overlay is present makes a lot of sense. Trusting apps from Google Play to do this while blocking other install sources would be an obvious mistake, though.

I'd argue this feature shouldn't exist (because of things like the API you mention) but having a user override doesn't make sense here.