I love my apple products, but the hubris of Steve Jobs on something like this is hilarious. "We have a ton of low priced and free ads, which has forced developers to put ads into their apps that we think, frankly, suck." So what does Apple do?
iAds
Now, not only will you still get ads in your app, Apple is going to take 60% of the profit. Does this mean that app developers will be allowed to use their own ads as well, or if they have ads it has to go iAds? If it's the latter, I would be giving Apple a big F-You.
Clearly, you do not run a website.
1) It's 40%, as others have pointed out.
2) Almost every other ad network has the same 40% rate. (Some have 35% or 30%, but not very many, and I've generally only seen it tied to exclusive contracts. Others won't even tell you how much they're taking.)
3) They can use other ads, too. This is simply a different way to serve a different kind of ad. More engaging (hopefully) and less obtrustive — which will equal MORE people clicking through them.
Plus, since companies who want to advertise will be doing it through Apple, you know you'll be getting higher-quality ads than with some networks, not ****ing diet ads or teeth bleaching ****.
I hate advertising as much as the next guy, but this is GOOD for developers.