The issue is not about trust - it's about having a fair comparison.
Netflix has to show you a privacy label, Apple TV doesn't.
Zoom has to show you a privacy label, FaceTime doesn't.
Spotify has to show you a privacy label, Apple Music doesn't.
WhatsApp has to show you a privacy label, iMessage doesn't.
There are going to be people that see these labels and get put off, but then go straight to an Apple app that collects similar information (or more) without showing a privacy label.
Apple having a robust privacy policy in place doesn't negate this as a problem - all companies have to have privacy policies to comply with the law. If Apple thinks privacy policies are insufficient for third parties, they really ought to treat their own apps the same way.
So many people claiming that Apple won’t be showing these labels for their own apps, when they actually will be.

App Privacy Details - App Store - Apple Developer
Learn about providing your app’s privacy practice details in App Store Connect for display on your App Store product page.