the suggestion was strongly given that it is a filtering process to make sure nothing pornographic or malicious or rule-breaking (like voip over 3G rather than wifi) or ultra-buggy gets sold
1. You can't confirm any of these things without a thorough source code audit. Any good developer could trigger a malicious process n days after installation, while iPhone users get a false sense of security that their app has been fully vetted.
2. What's wrong with porn? If you think it's immoral, convince people with reason, not by taking away choices. And if you want your children to be shielded from porn, then far better to have a regulated iTunes store than to force porn-consumers to jailbreak, creating an unregulated underground environment.
3. "Rule-breaking" is arbitrary, and that's the main problem. Even "no VoIP" is vague - does that include a voice-based answering machine service, for example?
I think there will be a lot of shovelware seeping in
That's why, in a free market, businesses build reputations. Let users write reviews, give ratings, etc. The iTunes store is also a fairly good leveller, as all software gets introduced from the same interface (I realise firms will market outside the store).
How many Mac users do you find with machines full of spyware/trojans/resource hogs? Some ports *coughFirefoxcough* have only half-hearted integration into the Mac experience, but I'd hate it to mean that such products weren't available on the Mac.
If a completely legit and interesting game got rejected...
...then unless they were a well-known software house, they've already been cut off before they have the chance to make themselves known as "legit and interesting".
Also, consider that Apple wants to make money.
Yes, it would be a matter of convincing Apple that a less control-freak approach would increase 3rd party development and make Apple richer.