Yep, the free accounts are quite restricted. Having a paid developer account makes things much better(I have some app builds installed god knows when that I was too lazy to remove and they are running just fine) but yes, there are restrictions.

I would guess that what Apple wants to prevent is being undercut by another app distribution platform by making unauthorized app installation a pain. It is a choice that brings some advantages and disadvantages.

It is true that Apple might cancel the access to your device but I am find with that as long as Apple is not in a monopoly position. If A day comes and for some reason(like an US embargo?) Apple no longer can serve me, I would just move to the platform that serves me.

There's really nor reason to be paranoid over Apple's grip on the system. I am much more worried about Google cancelling my Gmail account and cutting me off from my digital presence.