What does the price or estimated manufacturing cost have to do with anything?
As long as you don't interfere with the rights they have to their IP and services, then it isn't.
But similarly, the contracts that Apple enters into with developers should not be any of yours.
Well actually their profit margin on just the hardware alone clearly shows they are far from offering anything for free like some commenters here seem to suggest (it's not like the game consoles that are/were sold below cost price).
Second (other than the fact that I actually am also a developer, and have apps in the Apple Appstore), who is Apple to decide that I cannot do X or Y on my iPhone? If I want to install (or offer via my website) an app that shows wiggling boobs if you shake the phone, I or my customers should be able to do so without any of the hurdles Apple has now in place. I do not need their moral policing. If they do not want that on their OS or store, then give me the opportunity to install Android ( 3....2....1.... ********* starts now
This is of course a theoretical discussion, as I do not use an iPhone (for above mentioned reasons) as my daily driver (just for development and testing) and am happy with the fact there are perfectly suitable alternatives that do fit my expectations for hardware I own.