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When the original iTunes Music Store opened up, it was reportedly because there was no other option to legally download iPod-compatible music. So Apple opened its store, with DRM to satisfy the bigwigs and prices that (according to Apple at the time) barely covered their operating costs.
But eventually, the accessory began to define the lineup. The iPod is slowly being seen as an accessory for iTunes, not the other way around. Apple got jealous of the interface, and tries to prevent competition.
The next step, with the iPhone, shows how deep Apple has fallen into the trap. The device doesn't even have a real development kit or a way for owners to add their own applications. If Apple made its money simply by selling the device, I doubt that they would have abandoned their old credo of giving the owner freedom.
Apple needs to get out of the content sales business, really. Perhaps sell off the iTunes Store to Apple Corps and return to concentrating on making great hardware that we can use to create, not just consume. Amazon's store, though buggy at the moment, seems to be the best way to bring this about.
