I think it's great.
I once suggested to MS that they should have been charging 99$ per game uploaded to the XBLIG service instead of a 99$ a year fee, which let people compile to 360, and let them upload every piece of junk they compiled. Android is the same way. It's a once in a lifetime fee of 25$.
There is this one company that keeps flooding renamed versions of their fake game onto the android market. It's a low quality, mal-ware type thing. They rename it, change the icon, and upload about 50 new copies a day. With a fee, that bullshit would be impacted significantly, if not stopped altogether.
The people who complain are mostly the exact types of people the system is trying to weed out in the first place. 99$ is nothing. About the cost of a pair of shoes, or 10 trips to subway on my lunch break. Work a single twelve hour shift at McDonalds and you're all set.
99$ is a drop of water in the ocean after months, or years of paying for software, coding, artwork, sound, equipment, legal fees, and etc.
It's also nothing compared to the cost of real retail. What is the cost of having 50,000 discs pressed and then trying to get people to carry them? What do you make back after every sale of a 10 dollar disc? Maybe a single dollar if your lucky. What happens when you have to buy back 49,000 of those discs because only your mom bought a copy?
With these app stores, and steam, you get eternal shelf space and infinite supply (something that doesn't exist in the real brick and mortar world). The amount that the store operators take off the top of every sale is nothing compared to how much you'd lose in a real retail sale. It's about 30% off the top, and that means you keep 700%+ more on that 10$ sale. And none of that has to go towards materials, or shelf space, distribution, a publisher, etc...
And all that for a tiny double digit fee!? Oh my god! What a tragedy!