Thankfully, the law does not see things that way.
It's DeathCar's product line. If someone doesn't like their cars to explode in flames when you step too hard on the brakes, buy a different kind of car! Easy peasy, lemon squeezy.
Possible, yes. Is the developer violating Apple's licensing terms for Xcode and the iOS SDK by distributing software in that way? Also yes. It is technically possible to avoid those issues, but only if you enjoy programmatic view construction and Makefiles.
Depends on the app. For an app from a company that nobody has heard of, yes. For Netflix, no. I guarantee you that Netflix subscriptions are not increased even slightly by the fact that Apple makes the Netflix app available via their app store, compared with, for example, Netflix having a "Download the iPhone app" button on their mobile website that starts an IPA download directly from Netflix. And this is likely equally true for any other company with a sufficient level of global name recognition (Amazon, Google, etc.).
The real problem is that third category — the companies that nobody has heard of right now, but that get popular, and suddenly want to cut out the middleman, knowing that Apple is no longer driving any sales their direction that they wouldn't otherwise get on their own. Apple really wants to avoid those folks being able to tell Apple where to shove their rules. And they've seen this happen en masse on the Mac App Store where developers are easily able to leave and distribute apps directly to consumers, so it isn't as though they don't have good reason to be worried if they are forced to open up iOS to non-App-Store installations.
But it is still the right thing to do.