This is truly tragic. To flog a dead metaphor: Walled Gardens are beautiful, until you wan to play Frisbee or rearrange the lawn furniture. The you risk running afoul of the Groundskeepers.
I use Scratch to teach programming in a K-5 Montessori school. Scratch on the iPod Touch was a great way to encouraging these budding hackers. I think we are selling our future short. Dev apps would be a great way to bring up the next generation of coders.