I agree, although I think this is doing that to some extent. Sure there's some scary text in the popup that I think could be toned down, but I'm not an expert, and to be fair there are risks going externally.
Allowing other app stores would be the big win in competition here, properly forcing Apple to win on value proposition. The DMA could force this, but I'm not certain about the details.
The scary text doesn't matter nearly as much as the fact that they are not unbundling anything. They are charging an effectively equal/higher fee for less services than developers would get from just sticking with in-app purchases.
It's an arguably quite sloppy illusion of competition/choice.
Allowing other app stores would be the big win in competition here, properly forcing Apple to win on value proposition. The DMA could force this, but I'm not certain about the details.