Hitting his point home he added: “This market has already crashed. You cannot sell your game for 99 cents and expect a return.”

That said, the market certainly hasn't "crashed." Apple wanted an app ecosystem that anyone with a Mac and some knowledge and time could join, and that's what they've got -- a developer who puts a worthy amount of time and talent into an app, with some help and promotion from sites like ours, can likely turn over a profit, if not make a good amount of money. Sure, the App Store's not very friendly to big budget producers, but that's probably not what Apple wanted in the first place anyway.

Actually you need to sell 215 copies of a $1 app to see a single cent. Apple doesn't pay out until you make $150, and you only get $.70 from each sale of a $.99 app, so even without the other costs that it takes to develop an app, your post is wrong

— The App Store℠ has revolutionized the way mobile applications are developed and distributed. With over 250,000 apps and 6.5 billion downloads, the App Store has become the world's largest mobile application platform and App Store developers have earned over one billion dollars from the sales of their apps.
We are continually trying to make the App Store even better. We have listened to our developers and taken much of their feedback to heart. Based on their input, today we are making some important changes to our iOS Developer Program license in sections 3.3.1, 3.3.2 and 3.3.9 to relax some restrictions we put in place earlier this year.
In particular, we are relaxing all restrictions on the development tools used to create iOS apps, as long as the resulting apps do not download any code. This should give developers the flexibility they want, while preserving the security we need.
In addition, for the first time we are publishing the App Store Review Guidelines to help developers understand how we review submitted apps. We hope it will make us more transparent and help our developers create even more successful apps for the App Store.
The App Store is perhaps the most important milestone in the history of mobile software. Working together with our developers, we will continue to surprise and delight our users with innovative mobile apps.