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Apple's letter doesn't necessarily say that apps will be dropped if people don't renew contracts, although I guess it's not a huge leap to assume that. All the letter says is that contracts will automatically be renewed if you pay the membership fee again. It doesn't state what the consequences of not renewing are.
 
I think it's to be expected that if you drop out of the program then your contracts are not renewed and your apps are withdrawn from sale! :p (I say this in the nicest way, Detz - I have great respect for you and your apps :))

The other point you make on your forum Detz, is that there will be a big drop-off of bad apps. I'm afraid I don't think this will happen - there is a steady stream of developers keen to 'have a go' at developing for the AppStore so I think new bad apps will appear at least as fast as old ones drop off.
 
Apple's letter doesn't necessarily say that apps will be dropped if people don't renew contracts...

I seriously doubt that the iTunes store can legally continue to distribute or sell an app without a valid (and non-expired) contract with the copyright holder.

but ianal.
 
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