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The 70-30 cut alone might be acceptable, but what makes it ludicrous is that the developer is forced to offer the in-app purchase option for external services like Instapaper, which are not in any way tied to the iOS platform. I mean, what's next? Should Evernote, Remember the Milk and Dropbox, to name a few, all be forced offer an in-app subscription with 30% Apple cut just because they happen to have an iPhone client among other clients?

Fair point. I think it comes down to the potential loophole that could be exploited whereby an app is offered for free but the full version can only be activated by clicking a link and following a separate payment flow that deprives Apple of 30%. This could also pose a long term usability problem.

App Store reviewers can and should be able to tell the discriminate between an app like the one you're describing, and say Evernote of Flickr which are perfectly usable without a paid subscription.

What about Netflix?

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