Nice, so even if users wanted to benefit from competition between Apple's and others' services, they can't because Apple blesses their software on iOS in ways that others' aren't.
BUT, I still prefer Google Maps, non-Safari browsers, Spotify over Apple Music, Feedly/my browser over Apple News.
I agree that it’s problematic that apps made by the OS developer receive preferential treatment, but I haven’t personally found that to mean that the experience is better than third party apps.
In every situation, it makes more sense to segment and triage private APIs for a promotion to a public API with user-friendly permission prompts and controls to protect the user's data.