Well developers are complaining that sales are that high.
Did you mean "devs are complaining that sales aren't
If not, I don't understand your point.
If so, there's nothing stopping them from charging only a buck for their applications.
The success of the iPhone app store isn't its pricepoint, but the fact that it caters to a phone a lot of people own (I wouldn't buy one myself) and they have no other choice- it's a locked platform.
In other words, yeah, I guess a 99c store would be great, but it wouldn't really change anything. Devs should still be able to charge more (you get better apps that way- do you think you'd be able to buy SPB Mobile Shell if they had no other choice but to sell it for a buck?), and you can still buy/obtain software from any place you like.