The biggest benefit I'm looking for is one-click install for non-technical users who (as I understand) would otherwise be faced with the "unknown developer" warning and would need to be directed to these steps -
https://support.apple.com/en-ca/guide/mac-help/mh40616/mac
I should really emphasize that the target market for this app (eventually) isn't developers or hackers, it's artists, musicians, and event hosts who want something much simpler than the existing paid options.
You can still sign and notarize your .dmg without distributing it via the app store. Users who download from your website won't see the "unknown developer" warning as long as you do that.
Your second point about your target market is much more salient. Tough call.
I should really emphasize that the target market for this app (eventually) isn't developers or hackers, it's artists, musicians, and event hosts who want something much simpler than the existing paid options.