Device freedom is a must. Any device should be completely controllable by the end user. There's two parts to this to me: app stores and the data collected by the devices. Users should have the freedom to install any software on their devices, period. Users should also have the freedom to stop all data collection by these devices. This applies to all electronics--video game consoles, TVs, printers, who knows what else…
If users didn’t want these things, users wouldn’t buy them. For the vast majority of people, and iPhone is way, way better than a computer that can run any app, precisely because it can’t run any app they click on. I’m a hacker, so I would love to be able to install any software I want on my iPhone, and introspect it in other ways. Most users, however, would have a way worse experience using their phone if they were…
The vast majority of people you're talking about don't realise they're having their prices jacked up with taxes or their options curtailed by Apple. They just assume the App Store is where you get the apps because it's been programmed into them over the last 12 years.
Allowing third party app stores doesn't change the API or permissions system already baked into the OS. If Epic wants to start an App Store with lax policies then if you and Apple are right about the value of their policies then that'll become apparent quickly enough and will still be a selling point of the App Store.
This is nothing like what happened with desktop computers, where the security model had to be welded on after the horse had already bolted. Windows (just as an example) wouldn't allow blanket admin permissions to software if there was a way to stuff the legacy software genie back in it's bottle. Unfortunately fixing permissions retrospectively would break a multitude of legacy software that hasn't been updated in years, in some cases decades.
Apple is not being punished for success, and you don't understand the problem or the legal case, which is entirely not at all related to Apple protecting or not protecting their users from pop-up ads.
Consumer choice didn't chose anything. Most phone users don't even understand that they are in a walled garden.
tldr; This isn't The Beach, it's The Truman Show.