I disagree with the blanket statement that it doesn't work: for every 10 programmers who cant be bothered to create FOO app because of all the fuss there will be one who does because he can take some market share.

I agree in spirit the system is screwed - but Apple do have a hell of a lot of sway. They have the leading product and the huge customer base (and the cool factor). To a point they can dictate things (and I agree this is bad and we should stop them)