I think this is a pretty clear example of Apple showing their true color. They are not interested in openness or right or wrong, good or evil. Apple has only one interest, and that is generating more revenue for Apple. In fact, their attitude casts doubts on Google's "Do no evil" policy merely by their close association to Apple.
Clearly, Crackulous put Apple in a difficult position, and this is their attempt at solving it with one great swipe of the DMCA-Axe. If given the oportunity to dominate, I believe Apple will do much more evil than Microsoft ever did.
So why do I still use Apple products? Because they are damned good.