Honestly, I agree with about 99% of the 'pro-apple' arguments here, because it is frustrating that companies aren't stepping up their UX game, but that's just peanuts compared to this type of nonsense: https://news.ycombinator.com/item?id=6092875
Luckily, my Nexus 4 has given me a smoother experience than even my old ipad 2 so far (can't say the same of my nexus 7 unfortunately), so it isn't that bad either way.
Swype however is kind of an obvious example of something they likely are not allowing not because of fear of competition but because Swype, if successful, would effectively fragment the text input mechanism on iOS. I can respect the argument that on iOS Apple wants to maintain control of the experience of entering text. Regardless if you feel this is an ethical thing to do, I think you have to acknowledge that in that case it is less about anti-competitive behavior and more about maintaining consistency, which is a core tenet of good design. I think overall the App Store process is largely about maintaining things like quality, consistency, and performance, and if you don't believe me you can look to examples like the Facebook platform where the element of human-screening was ignored and the place filled up with garbage.
They simply don't care about the segment and would rather support a good-enough solution than a best-of-breed.
It's a pity too because the primitive stock keyboard is easily my #1 frustration as an iOS device user. Once you've gotten used to something like SwiftKey or Swype on Android it's hard not to get angry at Apple when you're forced to go back to their 2007 keyboard. How is this putting the user first?
This is false. Apple has banned applications for dubious grounds, such as competing with Apple. Extremely useful apps like Swype and its alternatives have been banned.
The app store is not just about protecting users from shitty apps, it is also about total control over the iOS platform, often to the detriment of users.