It's worse than that. Google will be able to track who's using a particular app because it has to be installed the official way. This means for example that anyone who has installed an ICE Tracking app will be reported to the government and perhaps added to a terrorist list.

No you can still install APKs offline but they have to be signed (likely enforced by Google Play Services). Not to mention you can still install unisgned APKs like before with adb. Which doesn't make this any better of course.