"...in how we communicated with Jamie" is not an expression of fault in their policy, but rather an acknowledgement that they should have done a better job of explaining their policy.
Right, because the program is a work in progress and the only reason jwz got access is because he is who he is. Then Palm screwed up the communications (taking a long time to respond, making him sign a bunch of papers).
the problem isn't the app store ("the program"), it's that you can't easily download and install random apps. that includes the TOS that says distribution outside the app store is banned without written permission.
