Does it matter if the code-execution happens at `pip install` or `python myapp.py`? Using 3rd party libraries inevitably means you're allowing code-execution to 3rd parties, that's the point after all.
Replace "manually read through every file" with "run your security code scanner against every file" and it becomes less nonsense, but just as applicable.
In reality this really isn't how code scans are done, so it's still a little silly, but I could theoretically see something like this being a desire.
But every package manager seems to grant RCE to every installed package. I agree it's broken.