True, that the App Store is controlled by Apple, but that is the only way in and out for non-jailbroken phones. Jailbreaking isn't about stealing, its about opening the phone up to gain more control over it as well. This would allow you to install other programs, and there are pay programs in the cydia store.
So the next question would immediately be, what about the Cydia store apps?
I have Google's Gmail app. Are you saying that anything that is better than Apple's apps gets rejected since there is another email app available?
I finally went Apple (after being coerced by my kids) from my Android phone. There are a number of apps for the Android that I miss on my iPhone 4s. But TouchDown is one that makes me want to junk the iPhone and go back to and Android phone. I find the iPhone to be a fantastic entertainment toy, but it is clearly not as good a business tool as some Android phones. From an IT perspective, not being able to swap out failing batteries for users or add additional memory in-house is also a serious drawback and reason why many companies will not provide iPhones for their users.
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