If this happens with iOS, we iPhone users are cooked. At least with Google (android) you can install a self compiled or trusted (verifiable) APK. But for iOS, you literally can't install an app unless you buy yourself a developer accounts ($100 per year) to sign your own app and sideload it. It's also a lot harder to do that. 
I think this might happen sooner or later, even if they backed down for now.
This is one of the reasons I can never use Apple devices. I know if I use it, it is like I am in a prison. People do not know their right because if they know, they will stay away from Apple devices. Google is not the best, but at least it is better. With all the iPhone strictness, fake wallets are found on App store recently. If people are wise, iPhone supposed not to sell at all. So I will say iPhone users are not cooked if they know what is going on, they can switch to alternatives.I think this might happen sooner or later, even if they backed down for now.
I write all of that admiting that I am an Apple user, and have lots of products from them (iPhone, Apple Watch, Airpods, Macbook). Their hardware is just best.