I agree completely. Having a walled garden forces Apple to focus on the quality of their software if they wish to have a competitive product. (And their software, on the whole, is good because they have control over their vertical integrations.) If you forcibly take away their incentive to compete, the appeal of the iPhone disappears. Every phone's environment becomes a Bazaar; no more Cathedrals.
[1] https://en.wikipedia.org/wiki/The_Cathedral_and_the_Bazaar