I think the new solution is a good compromise.

The 7 days vs forever choice is still crappy and gives me a bit of bad vibes considering they are the ones that pulled the youtube promotions (shorts, games) you can never turn off forever, so there's the concern they will remove the forever option from Android in the future. But as long as they don't end up doing that, it's fine for me.

Also, I do think it would be a good idea to make an exception to the 24-hour wait time if the phone is new enough (e.g. onboarding steps were completed less than one day ago), and/or through some specific bypass method using ADB. Power users who get a new phone want to set it up with all their cool apps and trinkets right away, and it's not good user experience to have to use ADB to install every single sideloaded app. Meanwhile a a regular user getting scammed right after getting a new phone is statistically unlikely.