Imagine you're working on a hardware product that can communicate with your other devices over Bluetooth. How exactly do you avoid Apple in this scenario?

You can't, or you won't be in business for very long. You need to develop an app because Apple intentionally gimps their browser, and to release the app you must agree to their terms.

They're in a dominant position that allows them to dictate unfavorable terms to the rest of the industry which, among other things, stifles innovation.