I remember when the iPhone was new, and it didn't have an App Store at all and everything 3rd party was supposed to be a web app. Lots of people were really pleased when Apple finally did what all the other phone companies were doing and let people sell directly through them.

It's a separate question if Apple has been monopolistic or abusive with the terms of that app store, a question I couldn't possible judge; but the app store in and of itself isn't the problem.