Does iPhone update 1.1.1 kill off 3rd party application development?

We were all warned by Apple and those of us who SIM unlocked our iPhones knew there was the risk that they could never be updated. Apparently, lots of people (even some who should have known better) must have thought Apple's notice was just a false warning since they tried to update their iPhones anyways and turned them into iBricks. I knew better than to take another risk since I am very happy with my iPhone in its current state running on the T-Mobile USA network and made the decision to never update it unless there was a reliable hack I could trust not to brick it. Other than all the news surrounding the SIM unlock hack and iBricks, I think the bigger story of this latest iPhone 1.1.1 update may be the complete loss of 3rd party application support.

According to various forums where you can find info on hacking the iPhone, the firmware 1.1.1 update may have made the iPhone structure more like the iPod Touch and locked it down even more with stronger encryption. While I can understand that Apple wants to keep the iPhone locked down to reduce customer service calls and create a consistent experience for all owners, many mobile enthusiasts are used to installing 3rd party applications and customizing their Windows Mobile, Palm, Linux and S60 devices to their particular needs. The web-only 3rd party applications are decent, but many applications work better for people when a connection is not required. Stand-alone 3rd party applications also are more functional than a web widget.

I plan to avoid upgrading my iPhone and keep using the 3rd party applications I like, but this latest firmware update may kill off the future of 3rd party application development for the iPhone. Will Apple release an iPhone SDK and promote 3rd party application development in the near future? I personally think they like to maintain strong control of the iPhone and we won't see an official SDK any time soon.