But on this latest development, I want to hear Apple's argument first. That said, I didn't find their argument on the first action compelling so not optimistic. But maybe they discovered some abuse, for one random, made-up example -- my point isn't to trust Apple but just to see what the reasoning is first. This tweet doesn't say if they were given any reasoning for the latest action.
To your point, they have a whole lawsuit filling explaining why they think X should be allowed.
Practically, you may be correct that this is the most expedient way to try to fix the problem but you can get burned as Epic has in the short term with a sharp drop in revenue as Apple & Google have both booted them and may refuse to work with them in the future.
I'm aware this case is between two behemoth, the point to them is not civil rights but future revenue and there's a lot to say about each side's behavior, but on the principle it's the same I think.
The important point here I think is they are bearing the consequences of their act (not that they have a choice either), so it's not like it's unfair to Apple or Google. On a scale of "breaking the rules", it's closer to sitting on a forbidden bus bench than looting stores.