Woah, take it easy there, Satan! ;)
Kidding aside, it's clear that the model for paying up front for something you don't know you'd like isn't ideal. I think it's simple and honest, which is great, but it's not without its issues.
I think if Apple creates a good refund policy though, it would make this model more appealing for many developers.
Of course depending on the policy specifics, that could change the nature of the games being developed, but I think it's a worthwhile direction to explore nonetheless.