My tinfoil is that Apple banned this specifically because you can use it to get a desktop on iPadOS, which offends their "fingers can't touch mouse apps" sensibilites.
Far more likely that Apple doesn't like emulators because they allow for the distribution of software that bypasses the 30% revenue cut, as well as enabling content that they don't want (adult content, extreme political content, etc.)
It likewise seems clear that Apple relented in this case because a not-particularly-easy-to-use, interpreter-only PC emulator doesn't enable anything that isn't already possible with a Web app.
And I actually do have evidence for my conspiracy theory: iDOS 2. Apple was perfectly fine with it up until someone in tech media posted a guide on how to run ancient versions of Windows on it, then they pulled the app.
Furthermore, "fingers shall not touch mouse apps" was a Jobs decree. It's specifically the reason why Apple got into touch UI. Jobs designed the iPad out of spite due to a friend of his who was on the Windows tablet team around the turn of the millennium. Jobs was so angry that they were just putting Windows on a tablet - and handing people styluses to work around the small touch targets on XP - that he made Apple design a tablet computer demo around finger-only UI. That was then grafted onto the Purple project (which at that point was a clickwheel iPod with a phone modem in it) and we got the iPhone.
So my suspicion is that Apple has an internal "things which make Jobs spin in his grave" list that they would never allow, come hell, high water, or the European Union's antitrust regulators.
