If Apple is behaving like a jerk, why invest any energy in them? AFAIK there are other interesting developing platforms with interesting hardware. The iPhone might have a nice userbase, but I presume this will not matter in the end since most phones seem to head into the direction of being complete pc's anyway, why bother with a mobile 'desktop' application as new mobile browsers are going to be supporting more and more of the common desktop pc browsers features?
I mean - excuse my ignorance - , but why would a developer voluntarily deal with the ongoing Apple App store dictatorship? Without a healthy ecosystem of applications the iPhone is dead in the water. As is the current silo approach embraced by Apple. Why would a developer invest any energy into their doomed silo scheme?
IMHO let Apple reject applications as much as they want, history has learned us that the most open system will prevail (Video2000 Vs VHS for example) and my bet is on the Web and open OSses like Android, Linux and perhaps Symbian (if the ever get serious about going FLOSS).