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It's clear that you do not know what a monopoly is. Like so many other people on the internet, you think someone only has a monopoly when he abuses it. This is not true.
A company has a monopoly when it has a large enough market share to be able to dictate the rest of the market. That's all there's to it. A monopoly isn't illegal. A monopoly isn't evil.
However, once you're in the monopoly position, you can't just do as you please. Now that iTunes/iPod has a monopoly, Apple can no longer act as if it's a minor player. They can no longer cripple competitors by willfully locking them out of iTunes. Those days are over.
Apple is abusing its monopoly position right now. This is wrong. This must stop. Just as we would scream bloody murder if Microsoft were to intentionally break Firefox or SAMBA every other week, we should scream bloody murder now too. But now that it's Apple, it's suddenly all okay?
If Apple continues this behaviour, they're going to be in trouble. The Bush administration was too busy being idiots to care about stuff like this, but with the new government in the US, as well as the economic crisis making people think very negatively of big corporations, Apple is in for a nice round of anti-trust lawsuits.
And let's not even begin about Europe.
WIth this XML file you can only write third-party apps that make use of the iTunes library but NOT make iTunes the software itself work with your HW device, which it's what Palm and any other vendor SHOULD BE ABLE to do. Because iPod is one thing and iTunes is another, and this counts if you are the big player (just as in Microsoft's case).