Most markets compete on price, not quality.
You’ll see most people flock to where they can get stuff for free or very little, exactly as it is on the web.
We already see a race to the bottom and massive duplication of apps.
It will only get worse if there are more stores, and then nobody will be in a position to fix it.
Apple should be being pressured to do something about this, but forcing the store open will have the exact opposite effect of what is desired.