Correct. Google's incentive is not to maximize players in the space. Their user isn't the developer; it's the person who downloads things onto an Android phone. If those users get burned too often because it's too hard to tell legitimate apps from knock-offs, they'll stop trusting the whole Play store and probably the whole phone platform (in favor of Apple instead).
Google has the numbers to know that "buyer [or in this case, downloader] beware" isn't good enough because people aren't smart enough. It sucks, but at scale it's a pattern we see over and over and over again (see also "Why does Windows force updates," "Why is Apple so paranoid about side-loading," "Why is it so hard to get an app on Apple's App Store in the first place," and "Why does Facebook log a big warning in the browser console to not paste any code in there and hit enter").
Its a nice theory but if Google actually cared about that Play Store would periodically take out the trash by prompting users to confirm they DON'T want recently installed/unused apps to be sent to /dev/null.
Google has the numbers to know that "buyer [or in this case, downloader] beware" isn't good enough because people aren't smart enough. It sucks, but at scale it's a pattern we see over and over and over again (see also "Why does Windows force updates," "Why is Apple so paranoid about side-loading," "Why is it so hard to get an app on Apple's App Store in the first place," and "Why does Facebook log a big warning in the browser console to not paste any code in there and hit enter").