I find a number of facts to be in basic conflict in the report. Most developers can't make a living through the app store, yet they are afraid of Apple for some reason - even though they cannot make a living.
First the App store makes it fairly simple for every tom, dick and harry to write an app and put it on the store shelves. They don't need to package it, they don't need to setup their own web-sales site.... The problem is that you have a bunch of app developers that think if they write some small app that a trail of customers will beat a path to them and buy it, they think that any stupid app will make money. A lot of small apps will drive down prices for those apps, the smaller the easier to make the app the more competition.
I remember 30 years ago that there were many substantive applications to do some basic functionality... word processing. I don't know how many different ones were created, but there were quite a lot. I know my father had 9 installed on his Windows computer just to compare them himself (head of an institution) to see which ones were any good. Most of those companies went bankrupt quickly - even though there was substantive (much much more than most apps in the store) development put into them. Unfortunately the current generation seems to think they are somehow privileged and if they write something they should be able to make a living at it... it is not the way the world works. You have to compete, you have to invest time developing an app that you are passionate about, you have to risk losing time/money on the venture. You have to market your own app outside of the store, and you have to differentiate your product from all others. If you are really lucky and you do all those things correctly, then maybe you can be one of the few that can turn it into a viable business.
What it strikes me is that there are a lot of cry babies out there that either have not invested enough or have enough skills to make a go of it. Apple does not owe you anything -- it is up to you to market it. You have to approach it like Apple would which means you have to differentiate your product and worth more to people to buy it than the other products -- even if the other products are lower priced.
All the app store did was give you a place where someone can enter the credit card and buy it.... Apple does not owe you anything.
As far as developers being afraid... guess what.... it is not that much different than normal business.... When I do business I don't go out of my way to stab companies that I am working with -- it is just not good business. I usually approach it with two faces.... one for when I am dealing directly - where I am more honest and then one that is a public face where I don't air any dirty laundry because it is not good business.