I would personally have a giant problem with government intervention in a private matter. This is a market issue. If customers don't like how Apple is behaving, they are free to take their business elsewhere. If they don't, they are either offering a more compelling product than the other guys, or are serving the majority of their customers satisfactorily.

I can see the argument that developers for the App Store are akin to contractors for Apple, but I don't believe that's the case either.

If the developers really want government involvement, the first step WOULD NOT BE regulation, rather it should be arbitration. The slighted developers have the courtrooms available to them, and potentially have contract dispute claims they could file suit on. (I don't know, I don't develop for the iPhone at all.) If they don't, then they've obviously entered into a one-sided contract they shouldn't have, and shame on them. That said, there might also be a claim for that as well. One of the primary tenets for contract law is that there is mutual consideration -- a contract without mutual consideration can often be considered valueless on its face. I am uncertain whether or not the potential for profit by app store sales counts or not, honestly.