It's a massive blow for PWAs. There are a lot of corporate apps that are PWAs as the app stores do not really support "private" distribution of apps (other than via MDM-based solutions which doesn't work for use cases where you don't control the users' devices). Furthermore, by forcing the apps to load in a browser tab (rather than as a full screen home screen app) it breaks the support for push notifications. In my opinion this is malicious compliance.