It's ridiculous that you look at all of us being forced into a government-protected duopoly, and then say "Don't you dare force your decisions on us!" to anyone suggesting that this should not be the default. Rules for us, but not them.
Are you claiming that this is the only way of interacting with particular government services, with the other ways that existed before the app no longer being available? To make situation „dystopian“ this must be the case.
First it's new and optional, then it's mature but equal, then as adoption grows further, the old way of doing things gets deprioritized and neglected, then you're a 2nd tier citizen until they finally remove it altogether.
See: Essential businesses like grocery stores going cashless
Because how do you make sure it's the user who does those modifications, willingly and well-informed? That it's not a malicious actor, not an user getting socially engineered or phished? Incredibly difficult compared to the current alternative.
If it's not a software root of trust that provides an attestable environment like Android or iOS. It's going to be a hardware root of trust that provides an attestable hardware environment, like SGX. I can predict no other practical avenue taken. Unless the orangutan really forces a demonstration on how untrustworthy these environments can be and a lot of money and effort is spent.
But yeah, the user could have a choice to this extent.
That's what smartcards like Yubikey do, my government certificate is on it and it can't be exported. They could attest that but beyond that, the operating system of the host device is none of their business.
There's no proper way of doing so on Android.
Some countries, like Estonia, are providing their own SIMs to solve this problem. That indeed works. Unfortunately phones are being made that are eSIM-only and certifying eSIMs to the same EAL level is near-impossible.