It’s a well known fact that Steve Jobs is a control freak, only relaxing the rules when threatened by antitrust lawsuits and this story is just one of many that confirms how it can badly affect small businesses.
Yes, the fact that Apple is having full control over the vertical integration of its products can be a good thing for end users. Apple controls the experience and doesn’t need to justify its actions, even if there are glaring contradictions in the way apps are approved. The problem, if you’re a developer or content provider, is that you don’t know what is going to happen and if you have to make investments to publish something on the Appstore specifically, then you could end up being screwed.
It happened to Derek, to people trying to introduce widgets to iOS, hell, it even happened to Google.
Now that the mini tablet market (iPhone, Android) is blooming and that it’s becoming clear that iOS won’t own more than 20% of the market, it would be a good idea for developers to put away their flashy toys and to focus more on other platforms.