As far as i can see the main problem about $99 fee and 30% of sales isn't that it is too much, it's the fact they are forcing you to go through them. If this way of distribution would be just an option for the developer, it would be great - you would get relatively cheap hosting, you wouldn't have to worry about any legal issues connected with sales, you wouldn't have to advertise your application, it would be widely available, etc. But the problem here is they are forcing you to do this.
If i want to develop a java/symbian/windows mobile app, I don't have to pay Sun/Nokia/Microsoft to be able to distribute it to people. I can develop it (in different OSes for java and symbian), put it on the web and then people can download it and use it. I can set up a Paypal account and get a couple of bucks out of it. All of this almost completely free.
And please don't say you can offer people an xcode project so they can download the SDK, compile the app and put it on their iphone the developer way, because regular users don't know how to do that. If Apple won't let people simply download app files from the internet and put them on the ipod like podcasts, music, movies, etc, then it's bad.
People who are saying this is a good thing that will keep crappy apps out - what would you say if Apple announced that a new version of OS X will only be able to run certain applications that go through their test process. What would you say if musicians would only be able to get their music on ipods if it were sold through the iTunes store?
I am displeased.
You know as well as I that someone will (they always do) find / publish / invent as way to put apps directly from the internet onto the phone. The real question is, will the average consumer who buy the phone (not the developers and techies out there) venture to download and install apps on their own knowing Apple doesn't support it? I doubt it. Given the choice, they'll remember the stories of 'bricked' iPhones and decide it's not worth saving a few bucks or getting that app the developer was too stubborn to post to Apple.
Apple has every right to do this. It's their brand name. Their website. Their products. Their OS's. Their overhead. If you don't think it's fair, don't do it. Go elsewhere. Time will tell...if enough people go elsewhere, they'll (Apple) know they made a bad move and got greedy. Short of that, you can't blame them for wanting to capitalize on it, right?