This is the future; partially fuelled by malware, partially fuelled by the desire for platform control, and partially fuelled by government regulation.
They tried to pull a similar move with WinRT/UWP, but nobody wanted it, so now you can continue with Win32.
They would love to do so, but legacy compatibility is a major business advantage.
A lot of legacy software was killed off with the move to 64-bit Windows. Consumers survived that and for businesses registering their software with MS isn't a problem. They're already handing Microsoft all of their company email, their documents, their spreadsheets, etc. and paying Microsoft for the privilege. MS doesn't care at all about consumers.
Windows was never going to go another way than this.
Users who care about hardware and/or software freedom should be on linux.