A few days ago, veteran Mac software developer and Apple community gadfly Wil Shipley published a tirade against Steve Jobs and Apple for limiting development on products like iPod and iPhone. He says what motivates the company now is not quality assurance, the usual excuse, but profiteering:
Why is iPhone locked and exclusive to AT&T?
Apple wanted a share of the carrier's profits, which meant giving AT&T an exclusive deal. Which meant, we get screwed so Apple can make more money. It's that simple.
Regarding software development for iPods, iPhones and other Apple toys:
Apple wants every app perfect. Which is nice, in theory. In practice, it means innovation only happens at Apple's pace. The marketplace of ideas is much smaller, and the devices are much poorer because of it.
On "Made for iPod" and "Works with iPhone":
Apple's "approval" just comes from Apple getting a cut. It's a measure of greed, not quality.
And of course, there's the small matter of 99-cent ringtones of songs you already own:
Apple did a deal that benefits record companies and Apple. Not artists, certainly not consumers.