These are exactly the kinds of issues antitrust legislation needs to be updated to handle. I have no issue with a company running a store and selling its own products within, but it has to provide a level playing field. It's good they fixed it -- that the VP in question didn't know it had been done and then nixed it -- but this shouldn't even be legal in the first place.
Would that extend to grocery stores, where would you force walmart to put their own brands?
If I had an iPhone, it would be a several hundred dollar proposal (at least!) to shop at a competing store.