I really like the concept of the App Store being the only source of apps for the iPhone. It's one place to go to and find something, rather then having to search all over the place. Finding apps for my Palm, and my old iPaq was a mess. Even the jailbroken community can't keep things easy, as there are two separate installer apps, and multiple repositories you have to know about to see everything out there.

I can understand the issues though with the App Store policies and restrictions. While some moderation is nice, I think Apple has been a bit heavy handed at times against a few apps, and not allowed entire segments that should probably be allowed. So I suppose to me the concept is good, and the execution has been mostly good, albeit with some concerns.