'Products' aren't just iOS apps — the category also includes purchased music, movies, television, audiobooks, and iPod games; as well as rentals of movies & television, iTunes U content, and probably more that I'm forgetting.
For the rest of it they'd never be able to publish it without something substantially similar to the "personal, noncommercial use" clause.
Yes, for apps they should probably totally defer to the application authors, instead of just letting them be more restrictive if they so choose.
(i) You may download and sync a Product for personal, noncommercial use on any Apple-branded products running iOS ("iOS Product") you own or control.
Doesn't that mean that you can't make commercial use of iOS apps? Isn't that ridiculous?