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Apple has confirmed that PWAs will be just a browser bookmarks from now on.

Other browsers won't also have access to add (actual, not bookmark) PWAs. That is the main reason to not allow them.

If other browsers can add powerful PWAs then it competes with App Store.

> If other browsers can add powerful PWAs then it competes with App Store.

This is exactly it. If they can't have full control over how PWAs work, they prefer to cut the feature out of iOS.