Every time Apple makes a move on AppStore policy, there is a chorus of groans from the developer community.

Today, Apple changed terms to say that you can no longer use Location services in an app primarily for the purposes of targeting ads, if your app is not using those services already for ‘beneficial’ functionality.  While many people will spend time parsing the word ‘beneficial’ and attacking it (and I agree it’s a terrible term), the thrust of the policy change is that LBS services on the iPhone are for building features for users, not for creating a location-based ad marketplace.

I think that’s a great move, even as a developer.  It’s good for consumers, who don’t want to authorize every crossword-puzzle app to know their latitude and longitude.  And it’s good for developers, because it will help maintain consumer trust in iPhone/iPad applications and their use of personal data.

Does it limit your monetization options?  Yes.  Severely?  Meaningfully?  No.  Anyone who really thinks they’re going to offer a cute free app and monetize it with location-based ads should go read this PinchMedia presentation for starters.

I love a lot of what many people hate about the iPhone.  I love that it’s closed, and thus secure and manageable.  I love that it’s basically free of spammy, buggy, predatory applications.  I love that there are standards of utility, performance, and interface.

And I hope I have the guts to make unpopular, and right, decisions like this one in the future.