Big developers getting preferential treating from Apple is a problem. However, I am very much in favor of big developers developing for the iPhone. I like Sim City, with the update I like Katamari, I like title like pac-man and pole position. All we can really do is use message boards such as this one to really get the word out about smaller shops making great games at reasonable prices, that's what I tried to do here.
Also, I have no problem with expensive games. $10, $15, I think it's great. If developers think they can make money, it will be worth it to them to actually take some time and make a great piece of software. Would most people pay $30 for a KILLER iPhone game? Well, maybe not now with all this $.99 cent BS, (with very few exceptions like Tiki Towers) but maybe someday we'll get there. I think $30 games would be great because between the app store reviews, this message board, and some other message boards, if you buy a game blind and get ripped off it's your own fault. On the plus side, if the dev thinks their game is worth $30, it just might be and that would make a seriously killer app, especially if the community agrees.