Also, what's the deal with him not wanting to start a competitor? That's like his only bargaining chip in this situation, and he's just throwing it away because he feels overwhelmed and wants to make iOS widgets. I totally sympathize with him and how this situation is probably incredibly stressful, but when you have 50k+ subscribers per year + millions of happy loyal users, you gotta start bringing in outside people to help with these things. He's just letting a lot of people down.
I don't mean to trash the guy, but I hope that the other third-party apps see this example and change their response to find a better outcome for their users.