Or perhaps people really just don't care that much? You'd think if it was so terrible people would not develop for it. The fact it continues to grow and arguably flourish is a pretty good indication there's more good than bad.
I've met our payroll for months on iPhone contract work and licensing, but not one of our clients or customers has made back their initial investment. I hear the same from other iPhone developers.
Moreover, we've found Apple to be capricious in their regular and seemingly inescapable rejections, absolutely impossible to contact directly for any reason, and in the worst cases, only responsive to bad press.
Personally, I wouldn't write another in-house iPhone application for love or money, but I'm happy to capitalize on the gold rush while I focus on other platforms.