I don't think the AppStore is safer because it's Apple. I think it's safer because it's safer.
I just read an article about Android Malware saying that the amount of money stolen from Android users from Malware (like sending secret SMS messages to premium numbers costing $10 a message) was in the millions last year. Apparently the number of Malware attacks on Android is accelerating.
There are 0 malware/viruses in the wild for iOS right now, and outside of jailbroken devices there have never been any malware/virus outbreaks on any iOS device.
The AppStore is exactly as safe as I think it is.
At the end of the day, this is true. I have never downloaded an app from the AppStore that was malware. Are there exception? I'm sure devs can sneak stuff by Apple, but most of them won't becasue they know they'll get kicked out of the AppStore. There is no sense of this in the Android Market.
Hmm... I had to call AT&T about 90$ worth of premium numbers last month, spread across 4 iPhones (none jailbroken). You called these malware in your post, so apparently there are at least 9 malware cases just on my AT&T bill alone. I'm not sure if these actually count as malware though, as I know nothing about this topic. Just saying, to think any there are no viruses/malware for any OS is very dangerous imo. Many people said Macs were impervious to these exact things and in the end it just makes you an easier target. Don't think for one second your safe just because your on iOS.
This is not Apple's fault. I'm dealing with one of those things on our bill right now, and it's all AT&T.