And I would respectfully disagree with your perception that having a simple "sort by release date" discovery feature is the best way (for a consumer) to discover quality content. In fact, a system that promotes that as it's main discovery mechanism could be easily gamed, and was, which is why Apple made, and continues to make, changes to how people discover content. Understand that Apple's first commitment in any captive store is to provide the best mechanism to help customers find the item they are looking for, not the best way to make sure that any developer can "shark tank" their app to Apple's customer base. REAL marketing involves not just STOREFRONT SIGNAGE or ENDCAP PLACEMENT, which is what you are essentially advocating as paramount to success. Yes, large established brands probably have an easier time getting placement in those "premium" areas, but don't think for a second that they haven't spent large sums of money on external brand development and establishing a following for said brand that drives a desire for people to discover their product. This is a fallacy in your hypothetical marketing 101 class. Just means your marketing plans focus is incorrect. I would also disagree with your perception that the App Store is dying. A platform that is dying would have tech leaders like microsoft clamoring to introduce methods to develop iOS apps on their Proprietary platforms/OS. Adjustments to discovery also created more of a focus on quality. So NOW, I don't have to see the latest FART apps anymore... oh darn... Point being, I've seen SEVERAL companies really double down on mobile apps in general. Just went to a working lunch with one this week in fact, maybe you've heard of them, UsTwo? They made this wildly successful game called Monument Valley. Of course they also understand the value of diversification and partnership with other established brands.
Now i will say that the OS X app store and the restrictions there with sandboxing and such that needs some work... but thats not the subject of this particular discussion.
Your missing the single point that invalidates your entire argument:
Apple's App Store is captive. Developers cannot sell on the platform any other way.
Developers have no choice but to accept Apple's ever changing terms or go away. In June 2014 they just forced developers to give away 5 copies via family sharing. If a dev did not accept the terms they could not upload new binaries and renew their membership at the next renewal. Their dev membership would then expire and their apps would be pulled from the store.
iOS is not that different from OS X technically, so there is no real reason to restrict other stores or just selling directly. I would gladly move to a different store that offered better discoverability and better terms. Or just sell directly. Apple should have to compete just like everyone else. Allowing this does not hurt Apple or the platform. Users could still be protected by developer signing like Mac and API checking like is currently done for iOS apps - Apple could just sell a signing and API checking service for binaries distributed anywhere. The technology exits, but Apple will not budge on this until they are forced to.... stay tuned.
But one question: Did you get a paycheck for attending the working lunch you attended this week? If so, was that paycheck directly by app sales from an app that you wrote by yourself? If not how was that paycheck funded? Who paid for the lunch??
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That might be from your developer point of view, and I can´t and won´t dispute it. But, for me as a consumer it is still the absolute best App store without equal. What it means is that apparently the large studios that are pushing the small ones out of the market are good at meeting consumer´s demands. Nevertheless I notice I use many apps from small developers too.
I won´t deny that it is hard to make it as a developer. I have heard enough stories here from developers that explain this in good detail. But many small developers do make it to the top, so it is not impossible. And as long as the platform is still the biggest in terms of number of developers AND consumers, I have a hard time seeing how Apple should have killed it.
Thanks for the response that recognizes the challenges small devs face

I'm replying separately, but my points about Apple's captive app store still apply. Allowing other stores or direct distribution would not affect your choices. Consumers could still choose to use Apple's store exclusively if they only want Frogger and Tetris re-duex, or they could go "slumming' to the 2-N tiers to find the truly new innovative (even whacky "who would of thought of that" crazy ideas - like maybe slingshotting birds at pigs sitting in unstable wood/glass/brick structures) stores - that someone in a cube at Apple isn't going worry about having to explain to a bean counter why they to pressed the "featured" button for.
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Curious, do they charge for featuring?
No, but wink, wink... See the history of Anki Drive. Their "marketing only" app was in the store a few days before WWDC '13, but their bluetooth race car game hardware was not available for purchase until 5 months later. This was clearly in violation of Apple's own app approval rules. Anki drive had $50 million in San Fran VC money. NO ONE can deny that their $$$ didn't buy something. This was a big deal to me because I was working on an app that got rejected because Apple had not approved the hardware it was for yet. We had to send our hardware to multiple apple testing labs (they changed locations at their whim) to get bluetooth certification before the app would be approved... I've also worked for big companies that had a direct line to a real person at Apple. I saw apps submitted and approved within hours by just picking up the phone. So yes, it's a rigged system.
But again, the original toucharcade article clearly states that developers see featuring as just luck.
so I'll repeat the point made earlier: The risk of not being featured, total product development and marking costs plus risk exceed the viability threshold for small developers.
I've written 6 apps by myself and made a good haul in the early days. The last app I wrote was a complete game with completely original gameplay - it's going nowhere. I have at least 2 other completely original gameplay ideas that will never see the light of day because the platform is no longer viable.
So I hope you all like Frogger and tetris redux.
Oh, and could someone please list the small developers that "made it to the top" in the last year?