All I can do is facepalm at how Apple is shooting themselves in the foot. If they acted like a good gatekeeper in spirit of the DMA, they could have kept all the security provisions they have put in place (which are good IMO). But this action show that they cannot be trusted to be fair and non-discriminatory (which is required by the DMA) and they indeed risk that the EC will require that they allow third-party app stores without any agreement with Apple.
Apple is also being truly hypocritical about the DMA in general. They write passive-aggressive messaging every opportunity they get to talk about the DMA. But you rarely hear them, let alone write in the way they do, about all the modifications they make to accommodate the PRC.
At this point, Apple should try to smooth things out with the EU (out of responsibility towards their users) rather than continuously antagonize the EU. It is a battle they cannot win (they are not lawmakers). In that way they could keep more protections up that (probably) most iPhone users want.