It’s the unfortunate result of a significant number of users running ad blocking software and abusing the Twitch Embed to avoid ads, and this blanket “solution” by Twitch that impacts all embed users rather than just those use ad block is what we’re left with.
I personally don’t agree with the PSoD, and I know industry professionals that used embeds in broadcast production that now have to use other means to get the streams which are less convenient, and there’s also the people like yourself who want to run a website to show their stream, but still Twitch is very aware of those issues and yet still decided to make the PSoD a permanent feature of the Embed.