Why should Apple agree to distribute (presumably positive) content about their primary competitor? I can't find anything wrong with this decision.

It's indicates insecurity on their part about their products and a lack of respect for their users. Why not let the market decide?

If there is anything I have learned about Steve Jobs, it is that he decides for the market.

The market will decide. The market is the final judge on all decisions. Sometimes it takes a little longer for the dust to settle, but if a decision ended up being a bad decision then either change or get owned for it.

businesses aren't democratic, plain and simple. If that had been the government saying you couldn't publish your book about Islam or Judaism or something, then that's something to get up in arms about.