In the Apple store, if you got that many downloads and that kind of placement, the traffic from the various lists and high placement for 7 days would convert to many many paid sales over the following days.
Section 2.a. of the Amazon Appstore agreement, emphasis mine:
"a. Royalty. For each sale of an App, we will pay you a royalty (“Royalty”) equal to the greater of (i) 70% of the purchase price or (ii) 20% of the List Price (defined in and subject to section 5i) as of the purchase date. No Royalty is payable for Apps with a List Price of $0.00. Such purchase price excludes taxes and any separately stated fees or charges. A Royalty is due only for sales for which we have received final payment from or on behalf of an end user. If an App is purchased using a credit card or bank account deduction mechanism, final payment will be deemed to have occurred when the applicable credit card company or bank has fully settled the payment for the applicable purchase."
The one piece of legitimate news here is that app of the day developers aren't being compensated at all, but that comes no where near justifying "rotten to the core", especially as they're all well aware of the terms when they agree to them.
He seems overly concerned with people who download the app just because they think it will trigger some micropayment to the developer, but that can't be a large number of people (developers paying attention to the launch terms of the market) and in any case are very unlikely to make up much of his support burden.