He's pushing a false dichotomy in business models - subscriptions versus advertising - when the real world is made of both. I'm all for bootstrapping and charging customers directly for providing real value and all that 37signals rah rah rah stuff but come on, it's not the only way to make money online. How many newspaper sites have you paid for? Or any sites at all, like blogs? Remember tipjoy? I'm still waiting for the micropayments revolution (hint: it's been hyped in 3 year cycles since the beginning of the web. It's not coming).

iAds might create some of the same specialization as the overall web:

* some are task-centric apps that should charge people directly and don't need a lot of repeat usage to prove their worth.

* some are content-centric, rely on repeat visits to provide fresh content and support themselves through advertising or subscriptions.

And the fact that Apple is standardizing the format to be less intrusive (fixed height, no flashing crap) than your typical web banner shows that they still put the end user first, rather than trusting developers to not crap up their apps.