One thing I don't see addressed here is how this would impact the release criteria. Would it? If so, now's the time to start coordinating with the QA team to make those changes.
I think we're mostly concerned with the default experience, i.e. without third-party repos enabled. But the toggle should definitely work, since it's offered by gnome-initial-setup. So from the QA perspective I think we'll be mostly focusing on whether the repos are enabled correctly if the toggle is used, and whether the gnome-software prioritization approach (Fedora before Flathub) works properly. At this moment, I don't see any effect on our existing release criteria, but if anyone sees something, please speak up.