Then there are the ones who see this as the next big gold rush. I've started to hear all the same explanations that were given during the dot com boom as to why there's money to be made - the classic one "There's over 5 million people with iPhones in the US, I just need to get 1% of those people to buy my app and I'll be rich." or on Android "It's a small market at the moment, so I'm not making much money. Once more operators release Android phones the market is going to explode. I'll have first mover advantage and then I'll be rich".
People and businesses need a to be a bit more realistic about the market conditions and what they are likely to achieve. There's a good post here from someone who actually invested money and hired people to make his app for him. $32,000 at the moment it doesn't look like he's going to see very much of that back.