They are also being sued by Epic. Would you keep doing business with a company suing you?
macOS was always a general purpose computing platform, anyone could publish software for it.
iOS has not been seen as a general purpose computing platform, merely "a phone", and hence Apple's tight control has been seen as justifiable.
Apple added notarization of software to macOS last year, and in response to fears that this was another step on the path of "iOS-ification" of macOS, promised that it was not going to be used for anything but to stop bona-fide malware.
This stunt shows that that was bullshit, and the iOS-ification of macOS is complete. macOS is no longer a general purpose computing platform, it is now also a software console, with Apple as a gatekeeper.
If Apple retaliated against their publishing on iOS that would be one thing. Taking away their ability to notarize macOS software is my line in the sand.
My response was based on the OP suggesting the account closure was based purely on the App Store policy violation. I’m pretty sure it’s based on more than that, such as the fact that Epic is suing them in bad faith.
There’s probably a million app developers which have violated the policies in some manner at some point and yet very few get blacklisted by Apple.