In fact, lots of software has lower quality because of the App Store process. Developers can’t easily get bug fixes out and they certainly don’t release new versions as often as they otherwise would. This harks back to the era where software was really cumbersome to release on CDs, so you did it much less frequently.
The part about bug fixes is a little exaggerated, but the thing about releasing fewer versions is true, and the CDs are an interesting analogy.
On the other hand, people don’t like to have to update, even when it only entails an automatic download and a longer sync next time you plug your device in. So it’s not necessarily a bad thing either that developers have to plan their release schedule more deliberately.