I suppose you also think it's a good idea for internet service providers to control what you can access on the internet? Or for cellular phone service providers to control who can call you? I'm sorry, but that kind of control, while it does have some good points, can never outweigh the bad points. And I'm just talking about simple censorship issues, I'm not even getting into economic issues. It goes against the free-market principle and it's just wrong.
You are going overboard and comparing apples to oranges (no pun intended). Apple controlling the release of software is NOT the same as an ISP controlling your access to the Internet. If a large majority of their users are going to be downloading 3rd-party apps, then Apple has a responsibility to them to ensure that the apps they download won't destory their phone or steal personal information (call recording, passwords, contact lists, etc.). They also have a responsibility not to ruin AT&T's network with malicious apps.
Apple is offering developers a legitimate way for developers to make money distributing apps, as well as offering free apps, and offering users a simple way to get those apps. Most Apple users are simply not going to go to some random 3rd-party site to get something for their iPhone, I'd imagine. iTunes and the App Store is a standardized way of approaching things. It makes sense to me, at least.
I guess I got on the Apple wagon a little late in the game. I was seduced by all the talk of how great a company Apple is and how fair they are. I still think it's a good company, but there have just been way too many questionable moves on their part over the past year or two.
That's another deception that most Apple users fall into (myself included). The bottom line is, don't love Apple - love their products. They are just a big corporation like any other corporation, except they make really neat products that a lot of people like. I agree - Apple has done a lot of stupid moves recently. The $200 pricedrop on the iPhone just weeks after I picked up a pair for my wife and I made me pretty angry, especially since it had only been out for 2 months to begin with. But again...don't love Apple, just love their products and what their products can do for you.
Steve Jobs does not care about you, me, or anyone else on this forum. He is in business to make money and to make great products, and he does a great job at it. One of the pitfalls of getting into Macs is confusing those two - the company vs. products. I definitely learned that lesson with the iPhone