Ok well...first...you're using "straw man argument" wrong since I'm not trying to refute Apple's position (not trying to be snide but just to make you aware for future use)

On your point you're certainly right but I'd argue this is where we get into the realm of "pragmatist vs perfectinist". There is a UI hit to returning 1,000 results as opposed to 2 or 3. It's a small hit but it is there. Apple, as the creator of the device, has the right to choose to be perfectionist about things even if it makes developers unhappy