The horror stories are from 6-9 months ago, and are outdated. So, while folks trot them out in threads like this as examples of how terrible iPhone development is, actual iPhone developers know that it doesn't really come up.
Our last two updates were accepted within 24 hours, for instance. Our last new application took three submits, due to issues on our end- every email from them was helpful, and actually IMPROVED the final application. Turnaround was 48 hours, and, on the last submission, they expedited to same-day when I asked them to.
My only issue with the app store now is the returns. I have had 1 return and all I got from Apple was the form letter that if you have a lot of returns it might be a quality issue. What I would like to see is at least the questionnaire the customer fills out in order for Apple to grant the return. At least this way I can know if it's some sort of serious problem or just someone who made a purchase by mistake.
If that is professional business, I prefer to stay independent. Actually, all the pain just might be a deliberate barrier to entry for "small fish". Companies are used to dealing with pain, individuals less so.