Well we're at risk of defining what is right or fair. I loved my first year philosophy course just as much as the other guy but that's a damn slippery slope to go down :) I will say one thing on this matter though. Companies are amoral. The App Store may prove to be unpalatable, but don't think that some other company is more moral than another because when it comes down to it, morals are irrelevant to companies. It's why I believe in a strong regulatory government to keep companies in check, but again I'm at risk of getting this thread off on a tangent :)
Additionally, Apple has always remained consistent on their position on both revocation and refunds. It is public in that developers are told about this and must agree to the terms before joining. That's about as public as is necessary in my books.
So this should not be news to the developer. Let me bring up the relevant parts of the contract. I've skipped most of the examples because the last one is so broad as to cover the rest.
iPhone Developer Program License Agreement
8. Revocation
You understand and agree that Apple may cease distribution of Your Licensed Application(s) and/or Licensed Application information or revoke the digital certificate of any of Your Applications at any time. By way of example only, Apple might choose to do this if at any time:
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(l) Apple has reason to believe that such action is prudent or necessary.
Also, Schedule 1, and 2 (which I believe is unique on a per-country basis) outlines the legal obligations for refunds.
EXHIBIT A (to Schedule 1)
4. Warranty: You must be solely responsible for any product warranties, whether express or implied by law, to the extent not effectively disclaimed. The EULA must provide that, in the event of any failure of the Licensed Application to conform to any applicable warranty, the end-user may notify Apple, and Apple will refund the purchase price for the Licensed Application to that end-user: and that, to the maximum extent permitted by applicable law, Apple will have no other warranty obligation whatsoever with respect to the Licensed Application, and any other claims, losses, liabilities, damages, costs or expenses attributable to any failure to conform to any warranty will be Your sole responsibility.