'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.