Well, the problem is that many desktop workflows require data passing through many apps. How would you do that on the iOS model?
Critically, apps can not directly read your files, they can show a button which will open the OS file picker and the user can pick a file to open which then provides access to the app.
This means that opening a game does not instantly expose all of your sensitive files.
Unfortunately this model breaks down for any kind of file type that doesn't simply consist of a single, atomic file, e.g. various constellations of media files (playlists, subtitles, multi-part videos), multi-part archives, HTML files, georeferenced imagery with sidecar files, etc. etc.
https://juno.sh/ios-file-system/ for some info about how it works from the perspective of an application that might need to access other apps' data.