The problem I see is that Apple feels poor apps (whatever that means) reflect poorly on it rather than just on the app makers themselves. This is new. On OS X a crappy app is just a crappy app. Nobody blames Apple, people blame the application developer. There has to be some argument made that on a small mobile device this distinction is warranted, but I haven't heard it yet.
Actually, it isn't a new behavior. Look at the history of Nintendo and the Atari 2600. Bad apps reflect on Apple, just as bad games reflected on Atari.
Despite all the Adobe advocacy, people blame Safari and Apple for crashing when the trace shows it was the Flash plugin. Most people don't know what did it and blame Apple. I think they are tired of it.
