*$100 is more or less acceptable, $100 per year for revocable permission to compile is awful
If you're making any kind of serious money on the app store, this cost is practically nothing. Maybe 2-4 hours of your time, tops.
Think about how much the Macbook Pro you use to develop on costs.
Don't forget Apple. They told Apple that they would not use this key in certain ways, even though they do.
I don't see the problem with calling this "illegitimate". Jailbreaking so you can sideload apps is legitimate. Somehow cracking Apple's verification so you can sign apps without their involvement would be legitimate. But signing up for an enterprise account and then using the keys they give you as part of that in ways they tell you not to is, I think, legitimately illegitimate (ahem).
I think it's reasonable to call blatant disregard for contractual obligations "illegitimate".
Once MBS becomes more popular, Apple will have to react to prevent others from abusing this. This is the first real test I can recall of their enforcement policy. Honestly, I can't see any enterprises that rely on iOS internally risking TOS violations in a similar public manner even if Apple decides not to enforce TOS with MBS.
Cydia is the only real competing appstore I am aware of, and they are relying on iOS bugs that Apple keeps patching.