Apple makes money too.
As I said before, it's the customer that loses. It will be a shame if Apple can't work something out with them and this is the kind of thing that will drive customers and developers to other platforms. It might not happen immediately but it will happen.
I agree that it will be us who will end up losing in the end. I use the app on an almost daily basis and from my perspective it was the best app of its kind. My hope is that Apple and the devs can work out some type of mutually beneficial arrangement so that the application is allowed back into the App Store.