I think this point is bit orthogonal. The current outrage was largely because the app has to be pre-loaded and there wasn't an option to disable or uninstall it.
In the later incarnations, if this is an app which you need to access government services that is less of an issue, though I'm not advocating that this is completely fine. There are already apps like these CoWin (during Covid time), or Digiyatra (despite some of the privacy concerns around it [1]) which many are using. I hope if at all this app gets introduced (in the form you mention) there are larger discussions about permissions and the data access the app would need,and it can be disabled, uninstalled.
Agreed on all points.
I don't view these apps as net negative for a country like India which is helped immensely by digitization.
My comment was just pointing out that governments have a way to get you install the app if they really need to.