Latest on this from the WSJ:
[online.wsj.com...]

If Adobe's technology takes hold, a developer could theoretically write an app that could run equally well on the iPhone and, say, phones that run Google Inc.'s Android operating system. That could lead to Apple losing the ability to use exclusive apps to differentiate its hardware from competitors' products.

A tad off topic, but CS 5 is going to cost between $1,300 and $2,600, depending on the version. Ouch, if you have, like we do, five desktops. But, the real cost is more than that in training on the new features and figuring out how to do everyday stuff on the new UI. Therefore, we will NOT be updating anytime soon (i.e., this calendar year). We'll probably do one desktop next year when we hire someone who has seen it somewhere else.

Just to raise the temperature a bit...

Thing is, Apple doesn't owe anyone, other than paying customers, anything. Developers develop tools for the money (or if they don't, it's a hobby and... well it's a hobby).

Apple develop premium products. They look good, they function well and this is what customers pay for. If you talk to Apple customers about what it is they feel differentiates Apple products, it is often the little things that make an interface easy to use and so on that are brought up. Little things that other companies may feel is not worth bothering with. And they may not be worth bothering with, for many people - but that's not the point. This is the reason why Apple are sometimes seen as control freaks. But the best designers often are.

If Apple believe (and I don't know if this is their motivation) that their products may get devalued because a whole bunch of amateurs are going to start converting badly developed monstrosities into iApps, then they have a right to act. To protect their brand and their products' niches in the market.

Apples strategy with the iPhone is slowly resembling the fall of Sony's Betamax video format.

Apple is producing an amazing series of products with the iPod, iTouch and iPhone. The common growing complaint is the control they place on how you can use and develop for the device. Steve Jobs has claimed that the reasoning is the assurance of a bug free device, but they don't feel the need to place similar restrictions on their computers.

Developers have complete access to develop for Mac OSX and many would argue that Apple computers encounter less bugs or glitches than any other device.

The strategy is market control not quality assurance. If apple doesn't find a middle ground for its developers and users they will slowly lose its market share to other devices.

@bouncybunny Given that Apple developers pay Apple to have the "privilege" of making apps, they are customers too. Making apps may be a hobby for some, but if it was such a hobby, why would Apple have a whole tax center in Texas devoted to managing this money-making hobby?

Dismissing the concerns of developers is setting one's foot in one's mouth. Without developers making apps, Apple would lose the only comparative advantage it has against the competition, given its product is inferior to Android and other platforms.

That could lead to Apple losing the ability to use exclusive apps to differentiate its hardware from competitors' products.

They have already lost this ability. And when a popular iPhone app isn't ported over to other OSes, someone makes a clone. The iPhone no longer has superior hardware so there is nothing it can do that can't be replicated on other devices.

If apple doesn't find a middle ground for its developers and users they will slowly lose its market share

I don't think it's going to happen slowly, I think Apple is looking at the numbers and seeing that it's already happening. Their mistake is closing off even more in response.