There are web technologies emrging that will make the iPhone “webkit” based Safari browser adequate for a lot of application development and help a lot of applications reach iPhone users without Apple’s approval being required.
Of course, the most interesting iPhone apps that many will want work against Apple’s or AT&T’s vested interest” Google Voice being a prime example.
Thankfully, Andriod will allow those applications to become popular and put the proper pressure on Apple to remember that applications in the end drive purchasing patterns. Android competition will keep them more open and allow developers to create “better” applications that Apple can… and to unhook AT&T from having predatory control of what will become essential services overtime like “Speak to me map directions”. AT&T wants $10/month for Google maps to talk to you. Android makes that a feature of the product (may just on the Nexus One, not sure).