This is fantastic. Native web technology is often undersold and overlooked. But it’s there. It’s powerful. And it unlocks the potential to re-open the web and move away from walled gardens.
Users also don't really understand PWAs, they're used to getting things from the App store. The installation routine is cumbersome. Storing local data reliably is not possible.
So you ship a "native" App with a web view, but if you follow the terms of the App store guidelines to the letter, you can not update the app bundle through the web, and you can not use native APIs. It's the worst of both worlds.
It might be an acceptable compromise, but if you want to give your users the best experience, it's not a viable path and likely never will be.
Their current position is completely indefensible when viewed without rose-gold colored glasses.