Pure genius from a business standpoint, yes.
From a product/solution, far from it.
Its ironic that nearly everything Jobs criticized Adobe (Flash) for is patently true of iTunes. Bloatware, buggy, invasive, etc etc n so forth. Its a shit solution and everyone knows it. What was perfect about it? The timing: iTunes was pitched (to the recording industry) at precisely the moment they (the industry) was flailing about for a lifesaver to preserve their pyramid of production leeches' salaries. The 99cent pricepoint was astute business, I'll give you that. However, iTunes itself sucks donkey balls.
The app store, now, that was an elegant sales solution to a profit threat, and as such, was indeed genius.
Nice job Linnux (specifically Michael Robertson), for inventing that.