The relationship between Apple and developers creating apps for Apple platforms should be one of mutual respect. Apple's amazing hardware and software products provide a platform for third-party developers to build great customer experiences and earn a living. At the same time, high quality apps built by third-party developers make Apple's products much more attractive to Apple's customers, who would not spend thousands of dollars to purchase Apple products if these third-party apps did not exist.
The team responsible for the App Store seems to have completely lost sight of this. The rejection letter sent to Basecamp concerning their HEY app reveals a pettiness and a level of contempt for Apple's developer community that is simply unacceptable. Phil Schiller is the most senior executive in charge of the App Store, and surely knew of the content of this rejection letter, since this story has been the subject of massive public interest for the last few days.
Phil Schiller no longer has any credibility with Apple's developer community and therefore, it's time for him to go as the senior executive in charge of developer relations, to be replaced by someone who respects the developers who build great experiences on Apple platforms.