Additionally, because they control all of the payments on iOS they can provide much better targeting to advertisers for purchases, which open payment processes would reduce the value of.
But they've played this so badly that they are going to lose most of their app store revenue at this point. Sucks to be them I guess.
Users don't actually care about security. They don't even know what it looks like, or how to assess it. They do care about the Jungian shadow of security, vulnerability, which is what Apple's marketing instills in them as a customer: https://youtu.be/0HjDpPnxcP0
So, it's not existential at all. Apple could announce tomorrow that the CIA has unfettered access to all iCloud data, and Apple's customers wouldn't perceive any real alternative. Not because there aren't secure alterantives - but because they were taught that Apple knows best, and without them they're powerless to choose for themselves. This is the critical danger of becoming reliant on a commercialized "protection" service, both online and in real life.
This isn't about holding Apple to some arbitrarily high standard. It's about exposing just how apathetic their customer base truly is, something that has been documented by nearly every Apple enthusiast since the birth of the Mac. The "reality distortion field" we call marketing tenders more sales for Apple than any security investment they have ever made. Take a class in advertisement, I guarantee Apple is on the first-week syllabus.
[0] https://www.entrepreneur.com/business-news/apple-gave-ubers-...
[1] https://www.macrumors.com/2023/12/06/apple-governments-surve...
[2] https://techcrunch.com/2024/11/15/nso-group-admits-cutting-o...
So if company promising security and privacy promises cannot provide average joe security and privacy (often by saving him from his own choices by not allowing insecure behavior) it is very existential for it yes