It's tongue-in-cheek, but it's true: this isn't a free marketplace, it's Apple's playground, and only the business models and application domains that Apple approves of will be permitted. I don't like this guy any more than anyone else here, but a single decision by Apple effectively killed that aspect of his business.
Similarly, if you were to build a business around, say, a Google Voice application for the iPhone, you'd be in the same situation.