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Mozilla Shows Off Junior, a Simple Browser Built for iPad
The Verge reports that Mozilla last week showed off a prototype browser built for the iPad called Junior, based on a simplified interface and gesture-based controls. Junior — remember, not a shipping product — is full-screen, and lacks tabs; most controls are off-screen until called up with an on-screen button, to emphasize whatever page is loaded. See the video demo for an idea of what Junior is like in use.
You seem to have forgotten that Apple's original plan for third-party apps for the iPhone was web-apps. The plan was roundly rejected by everyone.
As it was when Palm/HP tried it with "WebOS". It killed Palm, and HP had to have a firesale of the devices that no one would buy.
The threat of web apps to Apple is like the threat of being mauled by a dead sheep.
Thats not the reason Apple don't allow other browsers. The reason is that one single standard web rendering engine serves the consumer better than having multiple slightly incompatible ones. And Apple's success is by making decisions that are best for consumers rather than delegating those decisions and offering choice for choice's sake.