You’re welcome to use App Store apps... I don’t see the problem.
Safari PWAs protect your privacy better than native apps, because Safari trusts no one. The App Store review process is trying to find a malicious needle in a haystack because iOS by default trusts native apps more than it should, due to the existence of that nebulous review process. Apple is slowly locking down native apps with each successive iOS version... but PWAs have always been extremely private, and they're still the gold standard as far as I've seen.
PWAs are actually completely isolated from each other and from the rest of Safari, so there is no cross-contamination for tracking purposes.
If you don’t want more choice and more privacy... that’s up to you. I really don’t know what to tell you.
PWAs aren't the "wild west" that sideloading apps would be, yet you're trying to use the classic anti-sideloading argument against PWAs, and that argument simply doesn't work here. Apple has supported PWAs since before there was even an Apple App Store for native apps!
PWAs already exist, and PWAs are already extremely private. Apple just needs to give PWAs push notification support. Users would still have complete control over notifications, just like any native app.
Apple heavily pushes native apps because of the profit they get from it, not because of concerns about user privacy. They have already built Safari to protect your privacy on the open web.