I don't buy this argument at all that this specific implementation is under pressure from the government - if the problem is indeed malware getting access to personal data, then the very obvious solution is to ensure that such personal data is not accessible by apps in the first place! Why should apps have access to a user's SMS / RCS? (Yeah, I know it makes onboarding / verification easy and all, if an app can access your OTP. But that's a minor convenience that can be sacrificed if it's also being used for scams by malware apps).
But that kind of privacy based security model is anathema to Google because its whole business model is based on violating its users' privacy. And that's why they have come with such convoluted implementation that further give them control over a user's device. Obviously some government's too may favour such an approach as they too can then use Google or Apple to exert control over their citizens (through censorship or denial of services).
Note also that while they are not completely removing sideloading (for now) they are introducing further restrictions on it, including gate-keeping by them. This is just the "boil the frog slowly" approach. Once this is normalised, they will make a move to prevent sideloading completely, again, in the future.
But that kind of privacy based security model is anathema to Google because its whole business model is based on violating its users' privacy. And that's why they have come with such convoluted implementation that further give them control over a user's device. Obviously some government's too may favour such an approach as they too can then use Google or Apple to exert control over their citizens (through censorship or denial of services).
Note also that while they are not completely removing sideloading (for now) they are introducing further restrictions on it, including gate-keeping by them. This is just the "boil the frog slowly" approach. Once this is normalised, they will make a move to prevent sideloading completely, again, in the future.