If Apple keep on artificially limiting what the iPhone can do, they're going to drive away developers.
Hobby developers perhaps. But most real developers (i.e. ones that are earning their living that way) care more about:
1) Revenue. (You can expect to sell about 10,000 times as many copies of an app on iPhone as on Android for example.)
2) Quality, ease and speed of development platform and API. (Symbian OS has about half the smartphone market. But the platform is such a pain it will take much longer to develop a given app. So they are losing developers to Apple.)