In a way I hope this gives more opportunities to PWAs or at least websites that consider the use case of getting "installed" (at least added to home screen).

It's a far cry from native apps and it comes with its own issues. But in my case, the vast majority of apps I use regularly have a competent mobile web interface.

This is of course limited by what the OS will allow as we see with Apple's purposefully poor support for them and Google would likely follow suit. Maybe alternative browsers could offer what's missing.

Maybe there'll be more power behind a Linux distro for Android that puts browser apps and self installs first?

People have a natural desire for ownership in some form, I'm sure we'll find a way. But things do look bleak right now.