I've come up with a workable way for Apple, and just about every mobile platform to solve app store issues regarding approval, First Amendment issues, and general criticisms about walled gardens. No matter if it's Android or WebOS, there is a level of walledness involved. Of course, there is Apple's walled garden with a moat filled with crocodiles and and plasma turrets, some obvious, some hidden.
How? Two app stores. One for approved apps and one for apps that are rejected or ones from developers who never bothered submitting for approval.
And I think it will work better for Apple than what they've current got now. More at On Apple.