IANAL but I think the best outcome they’ll get from this is Google needing to tone down the sideloading / 3rd party store warnings. Maybe some way to be a verified publisher that removes the direness of them.
Side loading is potentially dangerous though, so warnings are good. Especially for average person who will attempt side loading not knowing the permissions they are giving to the app. I don’t see a problem with the current set up, since even with it people install sketchy apks.
I think it is dangerous, since even alternative app stores have to be installed via side loading and Google doesn’t allow nearly everything onto the play store (nsfw for example)
So if you want to do nearly anything nsfw with your phone and outside your browser you’ll need sideloading.