"Meanwhile, for individual developers, the process disproportionately favors development of so-called 'crap apps.' Why should developers invest time in developing complex apps that might take months to review, when they could develop simple apps of limited utility that are more likely to get into the App Store in a day or two?"

This point seems spot on. Has anyone else been afraid to devote months to an app for the same reason? Seems like a scary investment given that you will just be subject to Apple's whims indefinitely.