...and as an iPhone owner, I say:
Good. I hope that the Feds can scare Apple into opening up the iPhone a little more. I think anyone who owns an iPhone should be on the side of the Feds on this one.
Here's a suggestion for Apple though, why not a two track system for iPhone apps: You can install whatever you like *as long as it doesn't use the cell-network* or you can install specially reviewed apps through the iTunes store, as is done now. That way if someone just wants to sell a game or a screensaver or whatever, they can just sell it themselves without having to get permission from Apple. On the other hand, things that use the cell-network and could potentially overload it or be used for phreaker attacks or whatever can be reviewed by Apple as is done now. Reducing the volume of things reviewed by Apple should make the process a lot less painful for developers and give users a lot more freedom.