1. For most of the time you could hold a thing to your head and talk into it, “installing” apps was not a default.
Depends whether you think the handheld thing is an appliance instead of a processing unit.
We only started complaining about limits on installing apps on phones relatively recently in the life of phones and even smartphones.
We still mostly don’t complain about watches, but within a decade we will.
2. iPhone, Palm, others in late 2000s, attempted to kickstart an open app ecosystem where you could save HTML5 apps to your home screen that worked offline and with no marketplace.
All kinds of apps proliferated briefly, I even had a PacMan clone. Those apps still work, and much more is now exposed through APIs than used to be.
Free distribution remains a viable option for most types of apps. Especially for those developers that are just fine with things like Electron as a platform.
Had developers embraced this and pushed the limits, the ecosystem might have tilted very differently. It might still be possible given enough adoption to warrant platform investment.