That Apple is creating a closed system is of little surprise. Steve Jobs is all about control. It works in the short term, but I believe it will bite them in the ass over the long-term.
Making use of a closed-system and trying to be the best in a category assumes that you have access to the most brilliant minds in that field, and the most brilliant marketing campaign. What makes Apple great? Well, they can control every aspect of their production because they own all their own tools and can keep out the crap. Also, they have slick industrial design. For now they also have some of the most brilliant minds in the industry, but not all of them. This is why they will never achieve world domination with their products. I suppose I could make use of their own advertising to make an example : "I'm a mac, I'm a PC". You are either an apple person or you're not. Their closed-system allows little flexibility. They would be doomed to what they used to be were it not for them opening their file formats to standards.
Why is this not the best approach? Because of human innovation. People hate being held down, forced into one category, etc. This is what apple is doing, but because their products are so innovative, consumers will go for it.
Google is much smarter; they know what to hold onto and what to open up for the masses. Even though they employ many geniuses, they are always on the search for new innovative ideas. That's why they purchase so many startups, or so I've been told.
That's why I believe in a race between Google and Apple, Apple WILL lose eventually.
Closed-systems should actually drive innovation because they must be circumvented. That's why Apple products are cracked all the time. So I guess the challenge then is, that if you aren't happy with Apple, build a better product and market it as well as they do. All things being equal, the open-system product will win every time. You can't employ all of the brightest people yourself, all of the time. I think Apple will learn this in due time, and then things will change.
A sidenote is that a large part of Apple's appeal is simplicity because of their closed-system. If anyone could create an opem-system as turnkey as theirs, they'd come ahead by far. I think one of the closest systems to being fully open and turnkey I've seen so far is Facebook Connect, but I'm starting to become too long-winded, so I'll leave it at that.