The benefit of the app store isn’t money. It’s the security of the ecosystem. 3rd party apps will begin a race to the bottom of fly-by-night iOS developers in it for a fast buck with no qualms about advertising and data trafficking. Before long we end up with what is seen in the Android system.
I mean...is the situation on Android you describe anything to do with third-party app stores and sideloading? Because my understanding was that, despite there being very few hoops to jump through, the only time the vast majority of users even consider stepping out of the Play Store is to install apps to let them stream pirated movies.
Moreover, Apple's App Store is already filled with race-to-the-bottom, shady shit. Apps with bait weekly subscriptions and bald-faced knock-offs are highlighted in tech news and on social media all the time. That's what makes their attitude and arguments all the more galling here: they are doing a really lousy job keeping their own store a safe and reputable place.
The only thing they seem to do a good job with is legitimate malware, and I suspect that's mostly because the OS is so locked down and because they scan for use of non-public APIs.
Developers outside the official store will price undercut those within the store. Legit developers will be forced to leave, fold, and/or adopt the shady data practices of the fly-by-nighters. Eventually the official store will be shadow of its former self.
Well heeled consumers will respond by being reluctant to put sensitive personal information on their phones. The entire ecosystem suffers, and phones, instead of becoming trusted personal devices, remain the purview of games, emails, and fart apps. Everyone suffers, especially developers.
You guys, above all others, want people to put more personal info on their phones, not less.