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There's been a trickle of other blogs picking up on the idea.
Great mockup on TiPb.
Why would Apple want to do this? To create as large a market as possible for IOS apps.
Why do they care about that? Well, they make a lot of money selling those apps. That's a pretty good reason all on its own.
But even more important, for Apple, any developer energy that's applied to an Apple platform is energy that isn't applied to a Google, Microsoft, Oracle, Blackberry, Nokia platform.
I probably left someone out. Oh yea. The web.