Hmmm, I guess from a pure Make Money perspective it makes sense, and since the real cost of apps is small, it won't piss that many people off. But I still think it's a pretty damn cool differentiator. Interesting bent - perhaps people like you, kurdt, will go try them at Amazon (using up their cycles) and then purchase at the Android store, which would be the worst possible outcome for Amazon. Unless in the future they want to charge app devs to host a demo, in which case they could care less if the app sells or not.
Similarly, other companies are now thinking they'll find success in the 7" tab market, because (at least for now) it looks like Apple has no intention of going there. It's innovation, whether we all here think it's hot or not, that will create a really dynamic market and keep Apple doing good works.
Frankly, I'd be a lot more likely to bend towards the Crapple line if Apple didn't have to keep innovating to stay ahead. I don't see how there's ANY benefit in Apple being the only player in the space. I'd much rather they have to keep running to stay ahead then to lie back and rest on laurels. Because IMO in an uncontested position they'll REALLY nasty to deal with.