It's strong, but as a developer I'm ok with it. I know going in what the ToS are. I know what I'm getting into. There's certainly a tradeoff there still, because on one hand, there's some form of editorial control (unlike Windows or OSX), but on the other hand, it's as close to transparent as possible, and is there mainly to preserve quality.

I look at it kind of like the salary cap in the NFL. On one hand, it means some players aren't making as much as they would be if it were lifted a week ago. On the other hand, it means all players are making far more than they would if it were lifted a decade ago.

well, in RockYou's case, you could get around Facebook's privacy settings, which is seriously not cool. Imagine the outcry of Facebook's initial newsfeed, and multiply it by 10, and you'll find that shutting down RockYou was a good choice.

Its really about the platform owner's stance and what's at stake - for Facebook's TOS, breaking it means that Facebook could be sued for privacy issues, etc. Its ironic because Facebook has more sensitive information to protect than the iPhone, but is overall a more open platform.