Earlier quoted context omitted.
Some might try this move, but my guess is that sideloading will involve enough friction that user retention will drop and developers will be heavily disincentivized from relying on it for distribution. In particular I expect that every update will require user action to re-install the new version of every sideloaded app, which is the reason most developers don't go that route on Android today.
Funnily enough that's exactly the reason why Epic sued Google - having to confirm every update and install through a scary dialog box was too anti-competitive for them. Google responded by... actually, adding entirely new APIs in Android for sideloaded app stores to be able to update already-approved applications without extra permissions or approval. In fact, they even distinguish between "sideloaded app" and "insta…
They just want to be the gatekeeper so they can endlessly profit from their ridiculous Fornite metaverse concept.