Custom apps published for internal use by companies with fewer than 100 employees who aren't eligible for enterprise app distribution sounds like a niche of a niche use case, so it's pretty consistent with my view that they're more developer catnip and not a serious technology.
Your point was PWAs are necessary for small businesses to distribute apps. I just spelled out what that meant, since businesses with >100 employees can just use enterprise app distribution on iOS.
I would personally say that the barrier to entry for Apple enterprise app distribution is very very high, and requires so many hoops to be jumped through that it would take a much larger company than 100 staff to warrant that