I completely understand that companies will defend their own business interests. But the extent to which Apple has been leaning on spurious security arguments in order to do that is really starting to damage their reputation and in fact the security of their platforms.
Clearly, they're just making a point here, hurting developers and users just to spite a regulator.
What they are signalling to me as a developer is that mobile devices are just not a reliable platform. Better do as much as possible on the server.