The identity isn’t trustworthy, but as mentioned below their are ways to handle that with device id’s. Also it’s not pointless to encrypt communication with a device you’ve verified the identity of in the past. It prevents hijackers from later hijacking the device, without The user knowing it. Just the same as the nastygram you get when your ssh server changes its private key.

You’re effectively claiming SSH is pointless and/or useless encryption as it doesn’t use certificate chains to verify url/domain. Your argument is the same as saying that any devops ssh’ing into a new local server is pointless and they should just use telenet.