<unrelated thought>
I think the real reason why Apple has kept such tight control over the App Store has nothing to do with the applications or quality, at all. It has to do with iTunes and music locking. If you opened up the device, it's only time before a variety of media players and mp3 syncing mechanisms will appear -- all without DRM, of course and without the restrictions (only sync with one device, etc. etc.) And that is what Apple can't afford to do. It could potentially cannibalize the entire iTunes business unit.
</unrelated thought>