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That will change if Android overtakes Apple. There has to be a number 1, and the advertising is relative to the return and potential of the platform. I don't think Apple would be so stupid to ruin the experience of their product with adverts, they have other more inventive ways of being stupid (hello, iPad).
The main freakout about this whole thing seems to be about user privacy, but what does everyone have to hide? How much personal info can be gathered by knowing where you are when you want to play Angry Birds? If an app asks you for info you don't want to release then don't send it, they don't care about your cock size, they just want data on their demographic so future products can be targeted better and satisfy peoples needs.
There is a dark side to big business, but the way I see it, it comes into play with dodgy deals, poor treatment of employees and things like that, not directly attempting to fuck with their customers lives and sabotage their own products.