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What will you do after Android starts restricting FOSS apps?
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I've also been confused about this, but this is my take on it.
You're correct that they are making these changes to Android and not AOSP. This means that an OS like Graphene or e/OS/ will still be able to use sideloaded apps and other appstores like F-Droid.
I think the reason everyone is freaking out about this, is that it hurts appstores like F-Droid. It has a chilling effect on apps that are released to alternative app stores and may cause those stores to fail over time, thus killing FOSS apps at the point of distribution.
That said, this is also over my head technically, so I would love if someone more knowledgable could weigh in.
Yes, this is an important point overlooked by the 'But I have root' crowd.
Also: https://f-droid.org/en/2025/09/29/google-developer-registration-decree.html