Screen recording breaks remote access apps
So the category of software will still have some working entries (existing players will try to get approved, and probably will), but it's hard to imagine anyone will want to build a new one knowing its viability on modern macOS completely depends on filling out a form and hoping Apple's approval bureaucracy likes you.
Anyone who's used these unusually locked down entitlements know whether you can apply for it before building the software, or if App Review needs to have their hands on something functional first to approve it?