This is nothing new or interesting. There are no guarantees in business, or in life, that anything will sell just because someone put time and money into developing something. Most business start-ups fail. Most new restaurants go out of business. The FDA recalls entire farm crops because some other country maybe shipped something tainted. A very large number of new products never find enough retail shelf space to sell at profitable levels. That's business.
Business has its risks and rewards. As long as, for every developer that gets scr*w*d (so they feel) out of their investment, there are 2X more developers who make far more $$$ than they expected, the App store gain tons of new and innovative software development. Lots of developers like those odds.
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The difference here is that the success/failure of a restaurant or many other business ventures is determined by the open marketplace. A closer analogy might be that an otherwise successful small business is denied a space in the only shopping mall in town just because the management of the mall arbitrarily feels the mall doesn't need or want such a business in it. The management opens this mall to great fanfare and invites businesses to open shop there, except for a handful of types they feel are harmful. So, an entrepreneur takes the time to build up a small shop and then tries to open for business only to find the mall management has decided their little shop is too similar to an idea the mall's management might want to someday open themselves and they shut them down.