I'm extremely torn over this whole issue. I think Apple have done the iPhone community a great disservice in their app approval process and I also think the app store (not the apps) really sucks (bad UI, hard to find anything, the way apps get promoted and ranked, etc..) I don't like arbitrary rules and I think Apple are too hands-on with the approval process.

By the same token, I believe that government should not be (very) hands-on in shaping or directing what a company (operating in the free market) does. Double-edged sword. Some industries demand regulation while others do not, so it's not a blanket situation.

In this circumstance, I believe however that the FCC is justified in their inquiry because while the iPhone does not hold a monopoly position in the market, the body is responsible for overseeing regulation of wireless carriers. And one of the big issues at play here is exactly what involvement ATT has with this app approval process, what they may be doing to stifle competition and preventing customers from accessing other networks with their personal hardware.

I'd like to see mandatory limits placed on exclusivity deals that involve locked hand sets. Mandatory free unlocking provided by all carriers after "x" amount of contract time (at a minimum, since what I'd really like to see is a complete ban on locking handsets). And unlocking and jail breaking firmly established as exceptions to the DMCA or any other laws that might by crossed by this type of exploration.

On Apple's part, I'd like to see a much wider berth given to developers in the approval process and a simplification of the publishing rules. Make the rules rigid and easy to follow - of course totally public and transparent. Provide more disclaiming language to remove Apple itself from any liability involving complaints against an application or its developers as well. Frankly, these types of systems work best when they're as simple as possible. The more intricate you make them the more problems you'll cause and the stickier you can get with legal tangles. Next up is a complete revamp of the app store which should start by breaking it out of the music store and further allowing it to be decoupled completely from iTunes. It should work in a regular web browser, just like buying one of their computers.

Currently, I'd put Apple on the hook for an objectionable or actionable approved application. Such as something that used other's copyrighted work, etc.

I won't hold my breath for this to happen, but I think it needs to happen to have the app store flourish with great quality applications into the future, not just a high volume of them.