I’m not sure it matters about ‘the average consumer’. What matters is ’the consumer’. There are plenty of them, and all have different needs. This is evidenced by Apple themselves adding things like e2e for iCloud and lockdown mode. Clearly not for everyone, clearly opt in. This AppStore situation is no different - some people need to securely install stuff away from potential monitoring by govs or Apple and whatnot.
The fact that Apple cares enough to build such extreme privacy modes into their OS, but won’t budge on something that has potential for them to lose some control or perhaps more so, some money, is telling.
Not seeing it is fine, not wanting to use it is also fine, but actively fighting against something that would be opt in and also potentially life saving is absurd.