The customer pays 99 cents - 30 goes to Apple - 2 cents go to taxes = 68 cents to the developer
The reason I don't like this model is that 68 cents is not a lot of money. This is why I don't sell my apps for a dollar. The lowest amount is that I sell is 2 dollars. I couldn't imagine working on a team of 5+ people with a profit margin of 68 cents a purchase.
Then people say "Well if you sell 10 million then...."
You can actually make money selling your app for more than a dollar. One idea that I would like to see more common place at least for indie games is that the cost is 1 dollar per person. So if I made a game by myself it would be 1 dollar and if I had a team of 3 people I would sell it for 3 dollars. This makes so much sense for the developer.