This change impacts every mobile user, not just iPhone users. iPhones are a good portion of the userbase of most apps/websites. For PWAs to gain mass adoption, it needs to be available for the majority of users. This change means that will not be the case in the EU.
PWAs have just been doomed by Apple, and unless Apple reverts this change, they will now never be successful in the EU. And probably not even outside of the EU since non-european products still have european users.