The clones made a bad situation worse for Apple which is the reason they killed it off as quickly as they could.
Or Apple just has higher standards for itself and the user experience it wants to create. Buy a Mac, buy an iPhone, buy
TV, sign-up for MobileMe, etc... Apple isn't trying to sell products they are trying to sell a lifestyle. This seems to confuse people but Apple isn't interested in selling the cheapest products it can to the widest audience it can. Apple is a very healthy company w/a solid business model so why would they change to a business model that has been unsuccessful for them in the past and continues to be unsuccessful for most other computer makers not named Dell? IBM, the company that used to dominate the PC market got out of it completely because they couldn't compete w/the "race to the bottom". If Apple licensed OS X they'd have to raise their software prices (which are basically loss leaders) and their low cost, high quality first party Apps are a big feather in their cap.
Also, Apple knows that people, by and large, are cheap and lazy. Low-fi MP3s are more popular than SACDs or DVD-As. YouTube has all the buzz as broadcast/cable TV struggles to find itself in a changing market place. BitTorrent can be a crap shoot yet the rental store down the street is closing up shop. Speaking in generalities, quality is not at the top of the list for most people.
Lethal