Three or so years ago I was asked by someone to see if there was a virus on their phone. The "virus" was in fact a religious app, installed via the official store, which was opening a popup with ads every few hours.
Now, I could be wrong and it's possible that his grandma actually sideloaded an apk. If she did, I still think that you should be able to install an app that isn't allowed by Apple on their store, after all they block more than just malware: apps with free licenses, some VPN apps in some countries, torrent apps without any illegal content in it, etc.
If Apple wants to continue on this path, hopefully they'll go a step further and also remove the web browser and the ability to receive calls. Scam calls are a problem after all and we don't want people to send all their savings to "Microsoft" or "Amazon".
I find it very easy to believe that some malware vendor managed to trick someone into enabling things in settings. I would also believe that malware was just sitting in the play store[1] and available to install the normal way.
[1] same goes for the App Store.