Now, this doesn't mean that developers won't want a developer friendly phone, or that Apple is hurting their reputation with developers. I'm certain it has been frustrating to deal with the whole process. However, if 3rd party software isn't essential for the iPhone as a platform, then developer satisfaction moves down a bit in terms of importance in Apple's eyes.
Now, it's clear that games are major for the app store. Games are also a special class of software application that benefits disproportionately from having access to the hardware at a low level. They also have properties more similar to music and movies (incidentally, things the iTunes store is good at selling). Except for the simplest games, they require a lot of up-front design work and investment. It's rare that a released game goes through a ton of rapid iterations to "get it right". Games may still have bugs after release, but in general the functionality they are going to have is there on day one. They also ship with the final sound effects, music, artwork, etc... Games are also probably very unlikely to "duplicate existing functinoality" or any of the other cases where "normal" apps hit barriers. Perhaps Apple has (intentionally or unintentionally) created an environment optimized for game approval?
I'm certainly not defending the app store process, but I just wonder if the software development community has a disproportionate view of its importance to the iPhone as a whole.