I totally don't understand those who are saying they're rather restrict development on the phone and have fewer apps with higher quality.
Just look at OS X. There are tons of apps out there, many of them crap but many of them very useful and many of them written by small software shops or individual authors.
As a shareware author who writes software for Win32, OS X and Linux, I can develop a new app that I have a great idea for and bring it to market with no real barriers to entry. I can use any number of fulfillment processors (I use ShareIt) to collect payment and issue license codes. Thank the good Lord I never have to deal with Microsoft, Apple, or anybody else. I don't think my applications are crap, but if you think they are crap, you don't have to spend an extra 2 seconds on our web site. You can just go somewhere else.
Let me tell you how Apple can kill innovation. First, they'll charge a fortune for a developer kit for the iPhone. Next, they may force the app to go through some sort of certification process. This might also cost money. Then, they'll demand that they be the sole source for obtaining this app. They will sell it for $10 and they will give the software developer a couple of bucks for their effort in doing... well, basically nothing except spending thousands of hours of their time developing the app. The only guys who will develop under this model are a few big companies, and the apps will be mass market crap that they know they can sell a million copies of. Niche apps won't make the cut because at a couple bucks a pop, a person can't make a profit.
No thanks. This is ridiculous. Is this a Soviet era phone? Only the proletariat or authorized members of the mafia can develop applications? If this is their model, forget it.