If you want free innovation why not develop for PC? If Apple doesn't think free innovation is a good thing for their app store then it's Apple's loss for losing out on innovative software.
Many apps have network effects. You can put together a great messaging app but if Apple bans it or cripples it, it can't catch on.
And that's just as true while you're small. You have six friends and three of them have iPhones, you can't get them all to switch to your own app.
Meanwhile Apple's "loss" is of an app that they purposely didn't want, e.g. because it might have displaced iMessage by being a better SMS app (which they don't allow). They don't ban everything, they ban the things that are in their anti-competitive business advantage to ban.
Back in the real world Apple blocked UK governments app for letting EU citizen scan their passport and apply fir settled status, harming millions if people