Google doesn't give one single shit if users download malware from the Play Store, but hypothetical malware from third party sources is so much worse that we need to ruin the whole OS? That doesn't pass the sniff test.
Google wants to make sure you can only download malware from developers who give google a cut. They want to control the OS and remove user choice. That's all it is. That's what it's always been about.
"Protecting users" is a pretense and nothing more. Google does not care at all about user safety. They aren't even capable of caring at this point. There are far, far cheaper and more effective ways to actually protect users, and google isn't doing any of them.