If I can use alternate stores then some popular apps - Fortnite is an obvious one - will go them exclusively, forcing people to set up and use a store which will probably do less auditing. Those apps will be able to steal more of my data, and some of them might (will) be malicious (“poison”).
Once a malicious app destroys my phone, “the system is down”; I can’t use any apps regardless of where I bought them.
Ransomware is a multi billion dollar business, and alternate stores will be motivated to cut corners. What could go wrong?
This seems a bit hyperbolic. I personally have not had this problem on my laptop (a Mac) despite being able to sideload apps, and it likely being a much juicier target.
The app can do whatever it wants, but if I disable it’s access to the internet at a system level it’s not getting access to the internet.
Even desktop OSes work like this. Just because I install a piece of software on my laptop does not mean that it gets root access.