This is a response from a dystopian anti-consumer future that we seem to be living in because Google thinks customer service has no value.
> Afaiu this doesn't cancel the contract
There is no contract if Google didn't send the phone. The commenter doesn't owe them money for something they failed to send.
> Then, teaching all the fraud detection systems that your exact usage pattern leads to fraud seems unpleasant too.
Or (hear me out, this might sound insane): a fucking human could talk to the customer and flag it as "not fraud". This is how every other company does it.
The solution to getting screwed by an algorithm is not to give in to the algorithm. It's to talk to a human to override it.
The ultimate solution, I hope, is that the next iteration of the federal government is pro-consumer and enforces our UCC rights and/or breaks up Google.