The profits gained from sales of .io domains has come under increasing scrutiny given that the UK's control over the archipelago itself is under threat.
Chagossian refugee groups (former inhabitants forcibly removed in the 1960s and 1970s) petitioning the UK government for the right of return have recently extended their grievances to the return of the .io domain as well (Chagos Refugees Group United Kingdom et al. vs. Internet Computer Bureau Limited Citation 2021).
Additionally, Mauritius is also attempting to gain control over .io by petitioning IANA for redelegation (Bowcott Citation 2022).
However, while these groups fight for control over the .io domain, a recent UN ruling challenging British sovereignty over the island threatens the existence of the ccTLD itself.

https://www.tandfonline.com/doi/full/10.1080/23738871.2023.2238723

While I agree with you in that ICANN will probably save .io through some policy change it isn't as easy as just saying "screw all our policies, this ccTLD is now a gTLD." considering the fighting going on regarding it.