This is a very developer-centric view, though. For users, the app store is great - tons of applications, and they're easy to find, buy, and to install. The approval process, for the user, makes a better overall experience, increasing the overall quality of available apps. For each bugfix waiting for approval there I'm certain there's lots of buggy apps being rejected, and for each anedocte of rejection due to using the wrong icon or such nonsense, there's lots of appropriate rejections due to unstable apps.
Obviously without good and satisfied developers those benefits are moot. I'm certain the approval process needs to be [improved/changed/redesigned/removed], and maybe some kind of sanctioned jailbreak should exist where more advanced users can manually install third party apps, but I do believe the App Store itself is a good thing when you you look at it from a user perpective.