As far as I can tell this basically means that all apps must be approved by Apple to follow their “platform policies for security and privacy” even if publishing on a third party app store. They will also disable updating apps from third party app stores if you stay outside the EU for too long (even if you are a citizen of an EU country, with an Apple account set to the EU region).
The idea that preventing app updates is in line with their claims of protecting security is utterly absurd. “Never attibute to malice what can be explained with stupidity,” but Apple isn’t stupid.
I’m generally ok with them requiring basic security and privacy protections through the notarization.
They can ask users if they want that, I’m sure many of their users do. What they shouldn’t do is force people to accept their version of “security and privacy”.
They don’t force anyone; plenty of non-Apple devices out there to choose from.