It seems most people are arguing that the only alternative to 2 app stores is a large number of app stores. But what if the alternative is no app stores? Anyone can install whatever software they want on their device from wherever they want it. Just like it works for desktops. The need for app stores is an artificially created need (by the marketing brilliance of Jobs).
I would argue that an App Store, on mobile has helped avoid virus, and malware on phones, unlike how Windows was able to contain it. Having a trusted App Store by a company, who understands security, and has a financial backing to commit to a secure system, is beneficial all the way down.
Not sure if this stands true for the current Indian government.