Go and innovate on Android, what's the problem. Or make your own platform and innovate there. Or use HTML5.
What makes me sad is constant whining about stuff like this.
Also, if I build an Android only app I limit my audience. It's like saying I should create a website only for Firefox in 2005 when IE was dominating.
But to your point, I as a developer will absolutely shy away from the iOS platform after reading this and I hope others will until they change their policies.
That's what happens when you put all your eggs in one basket. If you make pre-prepared food for a grocery store chain and they suddenly decide to stop selling your products (for whatever reason, justified or capricious), you're going to be in deep trouble. How many small companies get >75% of their revenue from just one client?
It's a risk/reward tradeoff to hitch your wagon to someone else; they just got a large dose of the "risk" portion.
The point I'm trying to make is that for us developers iOS is one of the most important computing platforms. All else being equal we would benefit from it being more open. The more consumers you can reach with your products, the better.
Now if you want to do mobile apps you have to take huge bet when addressing 50% of the market. I think we should be working on fixing that situation sooner than later.