One of the killers for iPhone app developers is that the non-compete clause (let's call it what it really is) also stifles innovation. If you want to build an app that is similar to an existing one but better, it's an uphill battle.
As for sex apps, I oppose the ban on principle, but I think it's a good thing in actuality just because most porn companies are crooks that use ID theft, fraud, and malware to steal people's money. It's easy enough to download all kinds of porn to an iPhone, don't need an app for that, so the ban saves a lot of gullible people from losing their money.
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