It's a massive example of how Apple inserts themselves as a toll collector on an entire industry which they are largely unrelated to.

Let me pose it to you this way: if you are developing an IoT product, the only way to have a UX competitive with Apple's own offerings is to pay them a toll on every device you sell. In return, you get a couple dozen bytes of data Apple prevents other apps from accessing.

Does that sound like anti-trust regulation is operating as it should?

Bypassing if it is or not, how could we ever know how big it is if Apple is stopping anyone from even trying?