It's such a nasty side effect of demand aggregation platforms which is what everyone has been trying to build for the last decade+. It's a real prisoner's dilemma too. Earlier adopting developers get to be "fart app millionaires", but there's a definite tipping point where the supply side becomes commoditized.

I think Ballmer got unfairly criticized for laughing at the iPhone. I always thought he looked at it and thought it was such a ridiculously bad deal for both developers and users that no one would adopt it. His biggest mistake was underestimating the ability for people to act in their own long term self interest.