That is true but if a developer hits hard times and doesn't renew, shouldn't we still have access to any apps we purchased in our purchased list? Neither Apple or the developer makes any money if you re-download something back to your iOS device.
It could be it isn't legal to continue to distribute copyright material. They do it with iTunes Match, but maybe they worked out deals with the record labels.
If Apple wants iCloud to be a backup service then purchases should be backed up there, regardless. Nobody comes and takes stuff out of my house when those items go out of production. They don't go to my storage unit and destroy my collections of no longer produced material. When bands get in legal disputes with their record companies they don't send agents to my house to reclaim the albums since they can no longer be sold.
I guess the young growing up in such an environment won't know the difference as it will just be "the way it is" but I'm not willing to invest "real"money in digital goods that can be reclaimed at will by the distributors.
If iCloud is to be a backup service then things I back up there need to be considered "in my possession" legally and should be eligible for molestation by Apple. Every digital item I buy and mark as to be backed up in iCloud are there forever until I choose to eliminate them. It is our legal right to have backups of our purchases.
If Apple can molest my backups at their pleasure then iCloud is a worthless service that I will never trust for even basic data backup let alone allow all the private contents of my life to be stored on it. It has lost all integrity in this way.