So Apple has rightfully lost the trust of its users then. We submit to their walled garden because we believe they are benevolent. But when they make this kind of a mistake how can we trust them?

I don't really see how they can recover from this. Will they go out of business? no. Will they even lose market share? No. But there will always be that example of the time Apple got it wrong.

If I was an Apple employee I would certainly be concerned about how something like this could happen.