It isn't about abandoning the app stores, it's about offering reasonable alternatives, whether they be alternative app stores or first class web apps. There's definitely reasons to create native apps, which is why Apple created the AppStore in the first place (we all know that when the iPhone launched, it was only web apps), heavy graphics games being a big one, but simply removing existing functionality in response to being forced to allow these alternatives is just Apple throwing the dummy out of the pram.
For the record, Google has always allowed alternative app stores, browser engines and PWAs and has not suffered much in terms of financial loss but they are used to playing on the open web whereas Apple's financial model is more like Microsoft's (at least in software)
Apple is attempting to leverage its position as a platform holder, as it always has, by threatening the open web. It's APIs to support the web platform are shockingly, even purposely, terrible and it uses it's app developer licence to ensure that open development cannot happen on its closed OS. Worse, it doesn't even play on an even playing field, as it ensures that the WebView that developers are required to use is less up to date than the already poor Safari browser on iOS. This is anti-competitive and is the way Apple has always operated.
The EU has enacted its laws to protect users and developers working with the platform from these limitations. PWAs are just a part of it (see per install charges, WebView limitations, Apple malicious compliance). It's pretty obvious that Apple will not allow its AppStore cash cow to be tampered with so they will need to be strongarmed.
Neither did the necessity to add cookie collection warnings to all sites that use them. In spite of what some Americans believe, if the EU sneezes, the US catches a cold (and vice versa, for the record)
Electron is a useful hack with the same resource problems as Chrome rather than an ideal solution.
More the point though, PWAs are part of the existing web ecosystem. Apple has dragged its heels bringing Safari and their Webview up to spec on anything that might damage the AppStore ecosystem for years. They've also forced browser developers to use their webview instead of the browser's engines and has kept the API broken for functionality which they support in Safari - I mean try running a webrtc application in both safari and either chrome or firefox on iOS and see the problems.
By enforcing the Webview on everyone they also ensure that all web developers need to have a mac to debug Safari specific issues that happen on a level unseen since IE7.
The EU is simply telling Apple they can't leverage this anti-competitive behaviour, just like they rightly did for Microsoft in the 90s and Apple are just trying to salt the earth in the EU. It's a joke
Signed - Apple is collectively behaving like a spoilt child throwing a tantrum because the stupid-head EU said that it can't force the app ecosystem on everyone along with the broken webview. Finally we can get some good browser engines on the platform so they decide to pull a unity with the per install charges and pull in-place functionality from PWAs.