Under the same line of reasoning: if I own a brick and mortar store, it should be MY store. I should be able to dictate what I stock on my shelves. If customers don't like it, they can shop elsewhere.
But you can't shop elsewhere. Correct me if I'm wrong but isn't the app store the only way to get applications for the iphone short of jailbreaking? Don't you think if there was a competing app store that was completely open people would flock to it?
I'm pretty sure people wouldn't "flock" to it, for the same reason iTunes is still doing well selling music despite a better selection on Amazon MP3. Don't underestimate the importance of convenience to most people.
Except if you own all the brick and mortar stores you have a monopoly. Even if you just own a large chunk of them (like Walmart), you end up having way too much control over what form free expression can take. That is closer to the situation with Apple and it doesn't seem too healthy for society as a whole.