I guess we begin with the FTC’s claim? Which is not really that they’re upset about Signal, they’re accusing Amazon execs of destroying evidence that was in scope for the FTC investigation. Signal just happens to be the method they’re claiming was used to destroy evidence.
Is that the primary feature? It’s not a crime for most people to send messages to their friends and have those messages be deleted.
But certain types of communication, especially by parties that have been told they are under investigation and are discussing the matter being investigated, must be preserved.
No, it is fine for platforms like this to exist, you just shouldn’t use them for business, particularly if you know your business is under investigation.