@pwalker8. So your answer is that you presume Apple would have "competed" on "customer experience". In a market dominated by one-click purchasing and downloading books straight to ereaders. Once again I must quote Fizzy Water:
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Fictionwise had a crappy interface, but their prices made it worth the hassle.
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ADDENDUM:
To answer your question re more competition? The Appeals court actually affirmed that the conspiracy constituted an unreasonable restraint of trade per se. It also applied the rule of reason and reached the same conclusion. In the course of the latter it looked at Apple's various arguments along similar lines to yours and found them unconvincing. Black is not white. Anti-competitive contracts do not tend to increase competition.