This is like some weird 1984 double-speak. How does letting users install Apps from more stores "reduce their options"? Would you have "more options" if I told you that you're only allowed to shop at Amazon.com and your browser will block any competing online retailers? Are you being harmed by the fact that you can buy products from more than one online store?
And the whole secondary argument is some kind of joke right, as 80% of every "free" app in the App Store requests data on your location, sensitive privileges, and all of them use coercive techniques to trick users into accepting. Whatever approval process Apple is is using with the App Store is far from protecting users.