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LurkerJ said:

I don't know how I feel about Google using their market position to tell people how to run their websites. At least this time, the demand makes sense. 

Not ideal, I think, but like you said, makes sense in this case. Makes sense from Google's point of view too, because its aim is to provide good search results for its users, and mobile users are probably going to value mobile-friendly sites more. This is essentially ranking mobile-friendly sites higher - or, more generally, user-friendly sites.