The Manipulation Matrix
Hooks are persuasion machinery, and Eyal doesn't pretend otherwise. His ethics test asks the builder two questions: would I use this product myself, and does it materially improve users' lives?
Two yeses make you a facilitator, building something you believe in for people it genuinely helps. Yes-it-helps but you wouldn't use it: a peddler, working from assumptions about people you don't understand, fertile ground for self-deception. You use it but it doesn't improve lives: an entertainer, a legitimate business but usually a fad. Neither: a dealer, exploiting users, and both ethically and practically a losing position.
The matrix matters more as the tools sharpen. The same loop that makes a fitness app stick makes a slot machine stick. The mechanics are neutral; the builder's answers to those two questions are not.
Key idea
Before building a hook, ask: would I use it, and does it improve users' lives? Build as a facilitator. The same loop powers both fitness apps and slot machines; the difference is you.