For example, the online shop on the PS3 or any game console is a similar environment, even Steam on the PC is similar. These types of curated software services for specific devices have been around for a long time. No one seemed to take issue with them until the App Store. Why is that?
It is a huge step backward. Before I could borrow games from friends or sell them. But I think there won't be a big outcry as long as most games are still available on a disk.
For years those who supported the developers were subsidizing those who weren't. This is happening less now, and it's a more efficient market.
For the iphone the appstore is the only way to add applications. No one would care if they allowed competing marketplaces.
Why do we not express the same discontent over a PS3? Or any other closed environment? I don't think it's because smartphones were "open" before the iPhone.
Two reasons:
1. The device that plays games is a lot less important than the ubiquitous pocket computer (and for some only general purpose computer).
2. Games, more-so than other software, benefit from the walled garden / curated approach. Nintendo more or less proved this out decades ago when they entered the console market.
2. I would argue that your point also applies to the best apps on the App Store. The super-polished, simple and focused experiences that people love. They are hardly complex software, they are just well-thought-out design wise. By taking a curated approach you prevent the crud from building up.
I see it as similar to a fashionable clothing store — they buy all their clothes for cheap just like everyone else. The value they offer is in their curation and taste.
(In my mind Apple is not strict enough with their curation, which dilutes the value of their store. But I realise I am in the minority with this opinion.)
I don't think I've ever met anyone over the age of 40, from a non-technical background, that has ever checked for service updates to a piece of non-Microsoft software, downloaded it, and then installed it. To this day most people don't bother beyond Windows Updates (and only install those because Windows screams at them about it).
I've met plenty of Windows 8 users who haven't noticed 8.1 is out.
I have mostly found the rejections I encountered from Apple to be good things (I've had about 8 - 10 app rejections over the years). They have always led to me improving the app for the customer (e.g., include battery warnings, make text more visible, ensure app complies with child privacy laws, don't include placeholder artwork, and so on).
The App Store's curation is one of the things that increases its value. Even though developers hate it (and perhaps feel slightly disrespected by it?). I'd argue that its been a good thing.