There's a pretty serious flaw in the argument presented in this article starting with the incorrect comparison between Apple's App Store policies and those of the Android Market: "The process is still light years ahead of what's in place for the Android Market, which has seen a number of malware-laced apps get through, as well as proof-of-concept apps submitted by security researchers."
This comparison is completely false because Android Market does not filter or screen applications for posting in the manner Apple purports to do. In fact this a key difference between the two services in their business models. Both systems have seen malware distribution.
If as you assert "Reviewing the apps before approval is the right idea" and Apple was able to do this flawlessly ... nevermind, Charlie proved again that this is not the case and the argument falls apart.
Apple's handling of the two vulnerabilities involved here is poor and gives strength to the arguments of their detractors that the App Store approval process is a marketing feature and not a security feature.