And what about this ISN'T evil? Imagine if Microsoft claimed you could write anything you want in Word, but don't you dare try to sell it without converting it to PDF first. Better yet, what if Adobe tried to force you to sell your PDF only with their permission and on their own terms (and with a cut of the profits I might add)?
Step away from the cool-aid please.
Last time I checked, Microsoft charged for Word. That's where they make their money. They have no other avenue from which to make money from it. Apple does not charge for their software, which is simply a tool to make products to sell in their store. They make their money when the person sells their product in their store.
By making it free, it allows more people to create books to sell in the store, which helps both Apple and the creator.
The biggest obstacle for most writers is the creation of the actual ebook file. Writing the book costs nothing. Apple has created a free and easy way to do it. You're expecting them to spend all that money on creating the software and not finding a way to capitalize on it?
And one question, why exactly would you buy Word if it had such restrictions, and what exactly would Microsoft get out of such a restriction. That makes no sense.