I doubt $999 would have stopped people from making iFart apps. Wherever there's sugar, ants will crawl to it. On the other hand though, it would really decrease the number of apps in the app store.
I think this 20k apps in the app store thing is good for apple's advertisements. Gets people into iPhones. As for keeping them in, they gotta keep the quality up (or rather, move it up), but it seems to be an afterthought to them. We'll find out what they have in mind tomorrow.. maybe.
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