Sort of. My reading of the DMA is basically what you're saying; Apple has to let people install what they want on their phones, Apple cannot self-preference with app capabilities. Apple is planning to comply not by allowing users to install what they want on their devices, but instead by offering companies an avenue to enter a business relationship with Apple through which Apple will allow users install that company's applications, provided that Apple has vetted and signed them. That is, all told Apple still has final say over what apps are allowed on peoples' phones. It sounds like the EC is going to nix those app-signing requirements, but the rest of the scheme may or may not be deemed acceptable.
So the question remains whether the spirit of the DMA is "users should be able to install the software they want on their computers" or "businesses offering apps and services should be able to compete with Apple on the iPhone". Is this a fundamentally a pro-user law or a pro-business law? There may be overlap, but they are not the same.
The preferred alternatives seems to be to charge 30% more when buying things through the app rather than the website or not doing in app purchases at all. Presumably the restrictions or the not user friendly experience Google enforces for users makes it not worth doing it on Android, so the other options are better.
They didn't tell Apple not to charge 30% for their App Store. They can charge 90% for all they care.
They told Apple they mustn't block other installation methods.