Well, although it might be a case, I find it pretty difficult to invest substantial amount of money when I can be forced easily out of the market and Apple published no rules on which the submission process will be based.
Eh? Apple published a set of rules. It's pretty clear what types of apps won't be accepted - ones that use excessive bandwidth, frameworks outside the official SDK, VoIP over the cell network, illegal apps or ones that condone illegal acts, pornography. There are no grey areas, you know in advance just by reading the terms of service.
I work on games for official game systems, and I can tell you, the iPhone is FAR from a closed system. You want strict rules and limitations, try developing for Nintendo. Try even getting an SDK. I'll give you a hint, the SDK will cost $2000+, you won't be allowed to get one unless you have a business license, a place of business, and references (they'd much rather you find an already-licensed publisher to sponsor you). And you'll not only have to pay a substantial licensing fee for each game sold, you'll also have to pay Nintendo to manufacture your games - you aren't allowed to do it yourself for cheaper.
As for a potential end-user, are any of you people owners of Windows Mobile devices? There is a totally open system, you can get your software from anywhere, right? But one problem,
nobody does. People learn pretty quickly that the only place to buy software from is Handango, you can't trust the quality of software from anywhere else, or even if other places will honor your purchase.
And developers quickly learn that people only buy stuff from Handango, so they have to use them as well. And Handango knows this too - they charge 40% to sell stuff there. And with 70,000 apps, yours'll probably get lost pretty quickly unless it's amazing. The $99 fee Apple charges will keep that down quite a bit, a lot of "get rich quick by shovelling crap onto the system" people will have second thoughts when they have to pay $99 before they can even test their software on real hardware.
Yes, I see this as good for the developer, and for the end-user, they don't have to learn the harsh lessons of the PDA world. They'll start with one official place to get software, that won't have *too* much crap to sift through, that'll be a reliable place to trust with a credit card online. And it'll already be on their iPhone, conveniently ready to download stuff over the air.