From the Googles:
We worked closely with Apple to bring Latitude to the iPhone in a way Apple thought would be best for iPhone users. After we developed a Latitude application for the iPhone, Apple requested we release Latitude as a web application in order to avoid confusion with Maps on the iPhone, which uses Google to serve maps tiles.
Google Latitude. Now for iPhone. [Google via Daring Fireball]
Some nice (barely)veiled digs at Apple in that release!
Apple seems to have gotten confused and thinks it is supposed to be a Malevolent Dictator instead of a benevolent one. It grows tiresome.
I won’t buy an iPhone/Touch because of the way Apple is running the App store. Unfortunately, it seems like most people don’t care – they just want their shiny.