What would you do if you were Apple?
stevenf.tumblr.com
stevenf.tumblr.com
It's unavoidable, actually. How many apps are in the app store? Now, how many web pages are there? One of those is numbers is much, much bigger. As the media-rich, javascript-heavy web becomes more and more of what users do on a full computer, Mobile Safari is, at least, going to have to play catch-up with the rest of the internet.
So while, in today's market, your usage of your phone, your facebook, your rememberthemilk, your twitter each has their own iPhone app(s) in the app store, the web page probably has more features because it is a larger market.
I would take the app store and remove the distinction between a web app and a native app, turning web apps into first class citizens, allowing people to buy a web app for $.99 for Facebook-ing. I would slacken the app store approval process for web apps to encourage development on that platform, and I'd make sure that licensing were such that developers could sell an iPhone web app while having the same javascript on their full website.
Mac net sales = 13.7B
iTunes store net sales* = 4B
*Consists of iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessoriesI think a lot of it comes down to competitors in the hardware space. If Android really takes off, and it starts supporting web apps that work really nicely - the way we are talking about, in ways that are similar to apps built in Obj-C or Java that are running natively on the phones - then if I were Apple, I'd ensure that web apps were just as slick on the iPhone as they are on any competitor's hardware.
Otherwise, for purely evil and competitive reasons, I'd probably ensure that web apps always had limitations compared to the native apps, unless I found a way to monetize the web apps too (for example, by creating an easy payment mechanism for use by web apps that ties in with iTunes, where I take a cut).
However, I think that Google is going to pile on the pressure to make web apps super slick (they are already doing so).