I don't think this is an overreaction. The NDA means that an iPhone developer can't legally blog about developing iPhone apps. That's a bit wild, isn't it?
I agree. "Evil" is silly language to use here. Unfortunately, "evil" is often used to describe Apple's biggest competitor, so we developers are used to misusing that term.
Let's take a step back and speak more clearly: what Apple is doing is harmful to its developer ecosystem. Not evil, and maybe not stupid (time will tell).