The way I see this is:-
Government decides to remove TLF funding because the rest of the country shouldn't need to pay for something that isn't benefitting them
Covid hits, everyones finances gets screwed. TFL is no exception.
Government has TFL over a barrel in return for funds.
TFL now seeing an opportunity to make some money by deciding londoners will not subsidise outside travel cards. (if i understand it correctly)
And we've gone full circle. 1 & 4 are both dumb, the government needs to realise, AFAIK, public transport isn't generally profitable and trying to force TFL to fund itself is dumb as rocks. TFL/Mayor need to realise that funding tickets from outside london is a good idea - transport in the UK isn't exactly cheap, allowing people to come in and spend is a good idea. If they want to increase the ticket costs they should do so by a far smaller amount - £3 at most.
I do think we should bin paper travel cards though, I'd have it integrated into oyster in some way.
Probably because:-