I love the warez analogy. The product manager at Google photos is shameless but they are just doing the math. For every 100 people they offend with this sleazy behavior, one person turning on backup is a net win.
FWIW, when this happens, close photos entirely and reopen it. You will have to do this every 5th time you access photos.
Also be sure to submit feedback in the app. When the sleazy manager retires a millionaire in two years, maybe someone more ethical will replace them. It's worth a try.