What if you take the App Store to an extreme? Say, the App Store is so successful that iPhones and Macs are almost free -- paid for by the lifetime expected amount Apple will make from any and all apps sold on those devices. Would this be bad for the consumer? I feel like this is Apple's perspective: the app store subsidizes devices and helps consumers.

OTOH, the thing about Epic is I think they're incredibly generous with their developers and with their customers. You can play Fortnite for free, and are only charged if you want to buy a vanity item. And if you develop using Unreal Engine, you're only charged if you literally make millions of dollars. I can see being pissed off at Apple for being incredibly rapacious, wrecking their standing with developers, and undermining their own platform. I, for one, will never develop for Apple again after awful experiences with two apps I developed for their store.

Ultimately, IMO Apple is hurting themselves very badly, but I think it might be their right to do so.