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kartu,
Not a flame from me, but I think that all you can do from this is make sure that, in the future, you find out whether an app has in-app purchasing before letting your 4-year-old play it. Presumably this app was free? That's a pretty good indication that the developer will want to extract money from you by some other means - and that generally means in-app purchasing, especially when it's a game.
I totally agree that the AppStore should make you enter a password before permitting purchases, but you can't blame the developer for that. I really think that you are being unreasonable in claiming that you've been "scammed" by the developer, here.
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