I think you and I are basically in heated agreement that "[t]his is capitalism, with all its benefits and detriments," and that regulatory threats like the UK ones described in the OP do little more than block a sizeable portion of the populace from being able to buy the kinds of products they value from firms that are willing to sell those products to them.
I just don't see how the business-history facts (Microsoft "told developers to start from scratch," etc.) you list suggest that it would somehow be impossible for these massive tech companies—Microsoft, Amazon, and Facebook/Meta, at least—to mount a robust effort in the near future to provide our resident complainers with exactly the products they claim they want (indeed, the products that those folks assert they are entitled to be able to buy).
WarmWinterHat declares that he has some kind of basic human right to be offered a smartphone on which he can "blow away the OS to bare hardware" without any interference from the phone manufacturer? Well, great: Microsoft and Amazon and Meta and even Google are ideally positioned, based on their market capitalization, their demonstrable access to manufacturing capability, and their experience with these kinds of products to launch a smartphone—and a related smartwatch, tablet, laptop, desktop, smart speaker, Bluetooth headphones, virtual-reality goggles, etc.—that matches those specs precisely.
Sure, those big firms made various mistakes, as you describe, in their previous attempts to offer phone products... but so what? That's all water under the bridge now, and all these companies remain extraordinarily wealthy. Now that they know that the appropriate product that will sell like hotcakes in the market is one that gives
WarmWinterHat his precious unfettered right to "blow away the OS to bare hardware," they have everything they need to bring Apple and its disgusting walled garden, which no consumer actually wants (and which we need governments to protect us from), down in flames. When everyone abandons worthless iPhones for "blow away the OS" phones—which are, obviously, indisputably superior—Apple will be defenseless, and it will either adapt to the new market expectations or perish.
The point—on which I think you and I agree—is that if consumers actually want what Apple critics here claim, no governmental intervention is required at all; everything that makes Apple and its products so horrendously objectionable can be addressed by one or more of their enormous competitors, who can easily introduce self-evidently superior products and thereby destroy the Cupertino company through the ordinary operation of the free market.
The only other possibility I can think of is that the people demanding altered Apple technology are little more than overgrown infants pitching tantrums that Apple is not offering products (1) that address their bizarre little personal fetishes but (2) that there is near-zero actual demand for in the marketplace. If this is
not the simple story about capitalism that you suggest (and I agree), it would then have to be the case that, having failed to convince nearly anyone to join them in desiring such products, these folks are now demanding that governments use their monopoly on force to
coerce Apple into changing their products into things their customers hate but that scratch these folks' little personal itches.
In short, the alternative account to "[t]his is capitalism, with all its benefits and detriments" is
powerful national and supra-national governments should put a not-entirely-metaphorical gun to Apple's corporate head and force them to produce the precise toys that a few little boys holler that they're entitled to, even though no one else wants them.
And we
know that all of that can't be what's actually going on.