I understand it. More or less. You can use your browser for porn. You can download porn and put it on your iphone if you want. Nothing is stopping you from that sneaky hand shandy.
I think you'd be hard pressed to find a company thats major dealings is with the general public, and has porn applications from it's own approved store. Especially, when there is nothing stopping someone who wants to have porn on their hardware anyway.
Let us be fair; Jobs is just being a bit juvenile in his defense of Apples decision and, unjustifiably labeling another product as a porn etailer. That's where my problem is. A company official being a douche.