Personally I would like games with in app purchases to be in the "paid" category with a price "0" (or "0+"). Maybe even include how much the average player pays for it. I don't much care whether this is achieved through regulations, or done by companies themselves.
Apple has featured a game today that they have listed as free. The largest IAP is $55, but that price is hidden behind extra clicks. This means that when a consumer is comparing two apps they have extra work to do to compare true prices.
This hidden pricing has cause harm.
Developers cannot advertise a game with an honest price. An app sold at £5.99 would struggle in todays app store. So devs have to list games as free but with IAPs.
And you don't need to buy IAP to beat most game. This is like saying I can't list my shop as having "free" shipping because people prefer to pay more for overnight delivery.
Your point about overnight delivery is reasonable. Some games are playable without IAPs. But some games have a degraded experience without IAPs - timers that the player need to wait for is one example - and some games are going to be unfun without IAPs.