First of all, that is one of the worst arguments I've ever heard. A iMessage can install a virus, but you don't see people asking for human moderation of all of their messages on the remote chance that one message contains a virus.
I'll also just copy/paste my reply here since you decided to not reply to it.
What's the difference between running an app ad-hoc right now (via XCode) vs allowing a user to download and install any app they want. The answer is, there isn't any except for artificial limitations put in place by apple.
Anything an app that is installed could do would be the same between the store, ad-hoc builds, or installed from a download. The security is in the platform, not the App Store. How many times have we seen something slip through Apple's review process? Fortnite got a full CC flow UI through, many apps back in the day would slip WiFi tethering into their app and get through. All it would take is a simple API call with a boolean to enable or disable the "security issue."
> You haven’t made any case as to why customers should be denied this option.
Xbox Game Pass, done. Any time Apple bans someone from using a new technology, it harms the consumer and limits user choice.