> If Midnight is considered the last moment of the day then it
> evaluating to false makes even less sense since the rationale
> given is "time is seconds since midnight".

You are erecting a straw-man.  Python clearly considers time(0) to be the first moment of the day, not the last:

>>> time(0) < time(1)
True

It is my application that makes the opposite choice.  Helpfully, boolean property of time(0) makes it easy to write code that treats midnight as a special case.