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If you are curious how all this thing works, check out this wiki page for a brief intro. en.wikipedia.org/wiki/Trusted_e As I said, if you manage to break into TEE, publish a paper, be famous (academically), and enjoy the bounty money 😉
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To hack this thing, you have to either find a vulnerability in TEE firmware (which will be patched ASAP once found) or hardware (less likely to happen) to break the cryptography. Breaking TEE won't be easy, which is why many security researchers are actively working on it.
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The bounty money is quite good, too. Up to $250K for RCE in the Pixel TEE, and up to $1M for the Titan M. As the author of keymaster and owner of keystore attestation, I strongly encourage everyone to find the vulns and collect the bounties! So we can fix the vulns, of course.
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If I'm not mistaken, Safetynet's security relies on all the ecosystem's TEE safety, not just Pixels. Once one is broken, everyone using Magisk (or whatever) can jump on this private key+fp. And from my lengthy experience, Android doesn't spend time towards its ecosystem's safety.
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They could also choose to pass more information through to developers. They could add a field for whether hardware-based attestation was used. Of course, developers can use it on their own if they care about enforcing stronger properties than it does.