What's a good example of a specific app that will be hurt from this?
Specifically, this would have crushed rising giants like TikTok and Wish who each have spent over a billion on app install ads before they reached escape velocity.
There are thousands of medium sized apps that try every day to reach to new users, and now it will be more expensive (potentially prohibitively expensive) to do so.
The reason we don’t have as many of these as we otherwise could is precisely because of the incentives of this ad-driven merry-to-round.
Would the world be worse off without TikTok?
Yes. Clearly you are currently aware of every good quality software product in existence, and all their creators are all comfortably rolling in money.