>You would likely get more malware and more app hesitancy.
More malware, possibly, though android has plenty of that even with the play store. But, app hesitancy, maybe from a small subset of people, but i feel like those same people already show app hesitancy.
Only from my own experience, but i treat apps from the app stores about the same as i do random apps from the internet and do the same thing to verify in both situations, look at reviews and information about the app and make my judgement based on those. It's the same either way. All app stores do in my mind is aggregate reviews to one place, whether it's the play store, the apple store or the steam store, etc. I trust each of them about as much as something such as apk mirror, in all cases, i'm relying on the opinions and information provided by others that have used the app, if no such information is available, i consider it suspect and avoid.
The method acquire an app isn't what invokes trust, it's other user verification, no matter whether that app came from a store, a repo, a random website or any other method software can be delivered and it always has been, since the days of floppies.