Whats the point of market fixing itself in this situation?

"Market fixing itself" describe relationships between consumer and supplier. In this case "consumer" is better off so seems like market works as intended.

Developer's being f-ed over is sad thing but unless the situation for developers is so bad that they abandon App Store in troves then nothing will fix anything.

Also one could argue that overall situation is pretty-pleasing for everyone, apps that do not go into Apple's territory (system stuff) seem to be thriving and don't complain too much.

I'd rather them not to regulate it because they start with Apple and end up killing shareware and everything else. Who knows what kind of crazy stuff they'll invent for open source, can they outlaw it? I'd rather them to not even start.