The problem is that the extra few steps to install a PWA (which is really just a webpage bookmark you put on your home screen plus some local caching) are a lot of friction. The hilarity after Parler got pulled was non techies trying to describe installing a PWA to each other and failing at it.
You also lose a lot of "organic" search results with a PWA. You don't get the app marketplace searching/related results like Google Play or the Apple Store has if you aren't in the marketplace. If you do both marketplace apps and encouraging people to install PWAs instead of your app, that's now less downloads in the app store and therefore lower rankings. It's doable to make a PWA instead of or in addition to an app, and that means you're still a usable service if you get pulled from stores, but it's not straight forward or perfect right now. The push to make Google and Apple let apps stay in their stores is the wrong push -- instead the push should be for more straight forward PWA support.