Well, consider this: it doesn't even need to be explicitly enforced to have a detrimental effect. By sheer force of market value app developers will stop developing apps that won't make it into Apple's store and will self-censor and self-restrict what they make to satisfy Steve Jobs personal preferences. A sort of "chilling effect" that will freeze out much of the non-Apple-approved development on the Mac.

As for integrity - personally I think they've done many things that lacked integrity. The language ban was very low and put many small companies that were developing cross compilers right out of business. That's a huge ethical issue even if you think it was justified for whatever reasons Jobs claimed it was necessary.