This article is a bit light on content, but Arrington is basically right. As long as Apple wields and provides easy access to such a large, ever-growing, and eager market, developers will continue to build products for the platform regardless of Apple's questionable practices.
Which is why the correct response is to not support such behavior instead of using the shiny toys and whining online...
I'm curious if, in the spate of recent "OH NO APPLE HAS LOCKIN" articles, if anyone actually decided to stop using their iPhones. Because if not, Apple is going to happily continue counting its money over there and we will continue to have a stream of locked down phones.
I normally don't click TC links, and I normally don't agree with Arrington, but this is 100% spot on.
Even if Apple used a completely random method for approving apps (you have a 74.2% chance of approval, regardless of quality or content) people would still develop for the platform, because the barrier to entry is relatively low, and the potential rewards are high.