What you're referring to is the application of power, and their retention of arbitrary power, specifically.

Ethics is if they used that power for abuse or an unethical goal, or to acquire an even larger amount of arbitrary power.

Pragmatically, it's their app store, and they need to retain a non-trivial amount of power to police it. It's a requirement of ownership. If they don't do so, it will devolve to an even worse garbage dump, and rather quickly.

We're of course going to complain about inexplicable rulings, things we don't agree with, etc. but that doesn't change the equation unless they get so obnoxious that other places are more attractive or it violates some law.