Yes, but so too would people be less willing, like me who started off as a hobby and then the $99 (well, £59) was just about the right amount to pay. If I had to pay $999 per year, then I would definitely not have started iPhone app development.
I think Apple have done really well to make it accessible by so many people. The solution to reducing the amount of cruft is not to make it more expensive. I don't know the solution however...
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