"... it's better to be a sharecropper making money than a farmer whose crops sell for nothing. The iPhone is a goldmine for developers... in my experience it's much easier to make money selling apps than building a website. ..."

You are both right and wrong. An alternative way of looking at it: 'find a problem, take a risk and look for alternatives which have a much higher potential payoff'. Having said that you have to choose your battles carefully. But I wonder in Apples search for "purity"[0] there is a lot of "muck" that could be made money finding alternatives for disgruntled developers.

[0] As a side note there was a gallery of images of Jobs floating around of un-released images. One particular image stuck out more than any other that might help explain why the iPhone distribution platform is broken for developers. I looked at one image of Jobs in this house with no furniture save for a very expensive looking sound system. Could jobs aesthetic and psychology for pure look & sound be behind the approval process?