If it plays out like the last media that Apple 'managed' (music), then this would be beneficial to everyone in the long run.

The first stage, they keep everything in their walled garden for the early adopters who are willing to pay the premium even for DRM encumbered content. This is the incubation period where content creators learn about the market, build up their presence and run their numbers to their financial guys; and alternative channels are being build (non iTunes shops).

When they've build enough quantity to sustain the new business model and the price has lowered enough to make it a convenient micro purchases (ie: $0.99 songs, $0.99 apps), then they may take off the DRM shackles or at least loosens it.

Without transitions like this, I don't see anyone getting what they want.