I can't picture Steve fuming about it. I can see him kicking doors in and fixing it. But he's (aparently) not. That's the thing: either Steve lost control of his baby or he lost his sense of morals. Both are disturbing to me.
I'm not so sure - I think having 3rd party apps at all is a concession from Jobs. ISTR (but don't have any references, so this could be an urban legend) that his original vision for the Mac included buying all software from Apple, and making the entire widget from the hardware on up. The iPhone pre-SDk was that kind of vision realized.
