The decline of the mobile web
This will hurt long-term innovation for a number of reasons:
1) Apps have a rich-get-richer dynamic that favors the status quo over new innovations. Popular apps get home screen placement, get used more, get ranked higher in app stores, make more money, can pay more for distribution, etc. The end state will probably be like cable TV – a few dominant channels/apps that sit on users’ home screens and everything else relegated to lower tiers or irrelevance.
2) Apps are heavily controlled by the dominant app stores owners, Apple and Google. Google and Apple control what apps are allowed to exist, how apps are built, what apps get promoted, and charge a 30% tax on revenues.
Most worrisome: they reject entire classes of apps without stated reasons or allowing for recourse (e.g. Apple has rejected all apps related to Bitcoin). The open architecture of the web led to an incredible era of experimentation. Many startups were controversial when they were first founded. What if AOL or some other central gatekeeper had controlled the web, and developers had to ask permission to create Google, Youtube, eBay, Paypal, Wikipedia, Twitter, Facebook, etc. Sadly, this is where we’re headed on mobile.”