Sad to say, I think this is true, Apple will use the locked cell phone model rather than the open Mac model with its phone, it does mean that 1.1.1 was just the start. IMHO, this is actually bad for Apple, slows down the ubiquity of the device, but it will increase revenues substantially. Maybe it provides an opening for someone to do a really good and high quality open platform that is handheld. Who knows? I doubt it, but it is sad to see that innovation will slow.

More Legit 3rd Party iPhone Applications on the Way? | 9 to 5 Mac

The rationale for Apple’s recent complete and total lockdown of the iPhone is that these games would be easy to port to the unlocked versions of the iPhone. Developers could easily sell the applications on their own without Apple taking its cut (which is guesstimated to be about 2/3rds of the take). These pirated applications could also be distributed via torrent sites like music and movies are currently.

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