I wouldn't call their app rejections baseless. They aren't going to approve apps that compete with the phone's built-in functionality. Period. Yeah, it stinks and yes, GV got a raw deal because Schiller apparently pre-approved the app initially. But now that these precedents have been set, any lone developer who is working on a VOIP/podcasting/digital music sales app is wasting their time IMO.

Even if some "big name" developers leave the scene, I don't think it will matter much. The barrier to entry for creating apps isn't that high.

As for the "unsustainable pricing structure" he talks about, that's partly due to the above. It's not prohibitively hard to create a simple app–therefore, any simple, successful app will have competition and the price will fall. I think it's also due to the fact most people are create B2C apps. In my opinion there's a good market for niche/vertical-focused B2B apps. The kind you can charge $10+ for and that don't require app store visibility.

Just my $.02