Hewitt is dead wrong on his definition of middle men. They are there to facilitate and earn a profit. Nothing to do with lowering cost. They increase cost. Period.
Frankly, I think he's being a bit of a whiner about the whole thing. There are what, 100k apps in the store? If they weren't QCing it would be 1,000,000 and the percentage of shit apps would be MUCH higher than it is now (and it is through the roof right now).