They still think of themselves as a hardware firm, this restrains usage elasticity to a level where system hardware scaling is a dominant cost driver rather than system performance.
Besides the inefficiencies of physical space at AWS sites, it is also a fine business for the cloud provider as it generates a less volatile usage pattern than normal. As Apple is acting as a monopolist by dictating the same terms to everyone, they further remove any competitive advantage of providing anything else.
I vividly remember a video interview with Steve Jobs from a long time back when he was clear that Apple is not a hardware firm, it’s a software firm, and admitting that it took him far too long to realise that.
I think you are missing the point intentionally. You can't run those apps on an Apple iPhone, but I suspect you knew this.
It's ok to take the literal definition of the word monopoly and take it to its logical conclusion, I suppose. The U.S. government will not do that, however.
If you don't like it then leave. That's how Apple operates. I still can't comprehend why people insist on licking Apple's shoe soles but then complain that it tastes awful.