"Beautiful" has nothing to do with whether it's crippled or not. In any case, how is a 4GB executable + several-second runtime for trivial documents Apple's fault? Is the iPad crippled because it can't run a crappy cross-compiled version of OpenOffice with a PS/2 mouse?
I guess the argument is that it's apple's "fault" because the restrictions of the platform require the whole package to be bundled as a single binary, instead of allowing a more modular distribution mechanism. Most of the contents in the 4G are extension packages.
But I am not sure if "fault" is an appropriate term here anyway, we're simply observing two different approaches to software bundling that happen to be incompatible.
The restrictions are what they are, but TeX doesn't help at all by being large with an internal (circular!) dependency tree that would (should) get you fired in a flash from a commercial software house.
Apart from the fact that trees cannot be circular ;-) LaTeX installations work like a charm for other forms of distributions. I think it's really just a clash of philosophies here.