Today I care less about that and more about security and I mostly think that Apple’s preferred approach is better for security than what the EU proposes.This is mostly a false dichotomy that Apple likes to push. macOS has strong security with sandboxing, code signing, malware scanning, etc. I have never encountered someone among my direct acquaintances who had their Mac compromised. Yet, it's perfectly possible to make an alternative app store, circumvent code singing, etc. on a Mac.
Even with the freedom of an EU iPhone, you can still choose to completely stay in the Apple ecosystem and pretend that the extra freedoms that you have gained aren not there.
The thing is that Apple knows that people will purchase from an alternative reputable store if the prices are lower because the margins are lower. Or that developers will move there because they can increase their margins. And then Apple will actually have to compete on price (app store fee) and features.
It has very little to do with security and mostly with Apple wanting to keep their 15%/30% because it's hugely profitable.
the precedent for the powers European governments get over these tech companies as the other thing they want is removing as much encryption as reasonably possible
This does not make any sense at all. Why would you remove encryption, you could just accept an additional root certificate as a user and be protected by the same encryption.
I think it seems pretty important that the EU (and U.K.) work out how to escape the anti-innovation troughs they have found themselves in.
We are doing fine, we just don't believe in profit over everything. Moreover, the current US tech feudalism makes it harder to innovate and develop competitors, because you only get to do what the feudalist overlord permits you to do. Regulation is necessary to make it a fair marketplace again.