> It changes from "We guarantee we will distribute your app unmodified" to ... well, I don't know what you are promising, but it's not that.
The closest analogy would be a universe in which UPS insists you delegate the packaging of your product to them. Your product remains unchanged, but it's packaged with UPS's packaging which (for the sake of this example) may come with better assurance guarantees relative to your own packaging of the product you're shipping.
Point being: (edit: assuming no malicious supply chain interference; I'll get to this) the app is unmodified. Even with Google doing the signing.
I don't inherently see anything wrong with this, though I also don't think any physical carriers have tried this. Anyone have any examples? Even from other subdomains within logistics?
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Edit: with supply chain interference (compromising build pipelines, etc), who signs the app doesn't really matter; the app is still tampered before it gets to Google's marketplace. The trade with Google compelling their own signing infrastructure is that it reduces the risk of compromised keys for individual development shops enabling malicious actors to sign builds on behalf of the developers.
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Edit 2: Some pretty great answers and counterpoints here, such as FBA and the resulting uptick in counterfeit goods. Unexpected but good food for thought.