If I am one of the developer which having the hottest flash free game on internet. I would like to change my coding and transfer it to iphone and sell it for $0.99.
Anyway, different company have their own different concept of making money. Developer will look for the best way to earn in order to develop software. I do agree that iPhone have a lot of restriction when getting the apps post on the iTune store. But that will only enhance more control to the iPhone apps world. At least, Pornographic is not an issue to ruin the kids if they having a iPhone (provided not jailbreak)