I think it makes the "world" slightly worse in that it will be harder to discover malware. Little snitch has a small user base, but it's been used to identify many forms of malware and protect many more people once the threat is identified.
But it's like installing a custom HTTPS cert in your OS to inspect potential traffic that malware may use through, say, a Google Doc or Sheet. It's helpful to true professionals dealing with highly sensitive information, but it's ultimately a bigger source of compromise for the vast majority of software users.
I don't think there is an easy answer here. That's why I said I thought it made the world a "touch better" and I can see from your response that you understand the tradeoffs roughly as well as I do based on the wording of your response. The fact is that contemplating these hard tradeoffs belie the underlying truth: Securing computers is hard and getting harder and the stakes keep going up. I can't say if this move by Apple will ultimately be worth it, but I certainly understand the predicament they are in. This is no easy work.
No, they really don’t. Unsigned software is a little onerous, but signed software can come from outside the Mac App Store.
When you rent space in a building, do you get access to every single apartment/office space in the building? No. You get access to specifically what you rented and the front door. The maintenance people for the building will have access to the front door and other maintenance areas, but won't have access to your space. We can clearly conceptualize models like that. We even have something like this on phones.
No.[1] That's what people need to start understanding.
Even if you decide to trust that someone will attempt to act in your best interests (you really shouldn't, see Google's extinct "do no evil" mantra), you can't trust anyone to do so perfectly.
All this aspirational goodwill that fans express on behalf of their favorite FAANGMUULA is the tech equivalent of flat earthing. The facts are simple: no software is perfect, you can't trust any software.
It's a matter of degree of trust and hazard at failure.
And with DNS-over-HTTPS, DNS-over-TLS and encrypted SNI, that makes it all the more harder.
Even if you believe all the MPs / representatives are trustworthy and intend to act in your best interests, their competence is going to be limited, so we need to checks and balances and a limit on their power.
If pinning is used then you can't interfere by interposing a middlebox, the connection would just fail. I guess it's possible Apple would find corporate pushback is too strong, but maybe not.
Don't use things you don't trust. If you trust Apple's proprietary software at least you are getting exactly what you signed up for. Apple gets to do whatever they want, which you apparently trust them to do. Will they accidentally let in bad guys? Maybe. You signed up for that too.