It's not quite as convoluted as you describe, and I don't think Android ever changes that setting on your behalf. The fact of the matter is that it is dangerous. IMO it's a good thing that they provide you with appropriate warnings.
It's only dangerous if Google has better judgment than the end user. This may be the case for the majority of users, but there's a significant subset for whom it's not the case. It'd be nice if there were a way for the end user to nudge Google to step aside.
There is : the end user allows side loading from their preferred app, such as f-droid. Am I missing something?
Play Protect, mostly. It nags incessantly to be turned on all the time, even after I've made my intentions to sideline it clear.