I have been watching the fervor over Apples less than ideal NDA and vetting process for the iPhone app. store. All I have to say is CHILL out people.
I am not defending Apple's mismanagement of this issue, but everyone needs to relax. Apple will fix this, what they have accomplished in wireless space in just over a year is astounding. They built an ecosystem, market and handset, redefined carrier handset relationships - while their competition collectively stares in awe with soiled pants trying to figure out how to catch up.
As big as they appear on the outside, the iPhone is just one division of Apple, and it competes for resources internally with the other highly profitable areas of the company. When the cycles are available the app. store will get a face lift and the issues will be addressed. I know for a fact the team is going a million miles an hour in hundreds of directions.
It isn't perfect, but compared to the other options - it is really the only game in town.