If it were me doing it now, I would develop for iOS because thats where the money is at the moment. Having said that, you need to deal with the hoops that this developer is talking about. To my mind that is just part of doing business though.
Android playing with low margins has so far just resulted in it wining a huge share of the demographic that doesn't buy many apps and don't much care for smartphones anyway.
The App Store can probably be more profitable than Android apps even with 1/10 the users -- as long as those are the right users.
Not sure. It's been thirty years since the "desktop PC" market and Apple still commands the majority of the profits from personal computers sold.
(Lots of techies and tinkerers also choose Android for it being more "open", but those are an insignificant minority that doesn't mean anything money wise).