It’s not a perfect solution, but I’m not sure what the alternative would be that wouldn’t lead to Google’s domination. It’s still technically the market doing this, as it’s an Apple rule. People who don’t like Apple’s ways of doing things are free to use Android. I guess I’d prefer that over some kind of government enforced control.
I’m also going to assume the percentage of users who know this situation exists, care, and have an actual impact to their user experience is exceptionally small.
999,999 times out of 1,000,000, when someone is downloading a different browser on their phone it isn’t for the engine, it’s to get something like tab and bookmark syncing.