I don't think your analogy to websites during the dot-com bubble works exactly. During the dot-com bubble, people gave everything away for free without a business model, running on borrowed time until the investors' money ran out. With iPhone apps, the actual customer pays for what the developer makes (with Apple taking a cut, they are a business afterall). I, as a consumer, pay $9.99 for an iPhone app and the developer gets a majority of that money and developers make real profits. That's a big deal. There are very few websites people are willing to pay even a dollar for.