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I'm confused - I thought they provided the SDK free and you can create your apps? You have to pay $100 (or what's the $300 for?) if you want them to be in the app store?
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From what I understand, and I may be wrong, but you can download and install the SDK for free and develop apps with it, but you won't be able to transfer them to an iPhone. You would have to test them using a simulator in the development environment (XCode).
If you wanted to sell apps in the App Store, you'd have to first be accepted as a developer by Apple and once accepted, pay a minumum of $100. Once you do that, you would be able to transfer your apps to an iPhone and also submit them to Apple for consideration to be posted in the App Store. I think the $300 is for the bigger, commercial developers, not for individuals.
The $300 fee is for Enterprise developers that are developing apps to be distributed internally and limited only to a select few iPhones.
$100 is for all us regular iFolk that just want to run an app on an iPhone or submit to the App Store. These apps are restricted to iTunes distribution other than being able to run on the development-provisioned-iPhone that the developer owns.
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8 gig iPhone, no service (jailbroken on 2.1 to activate it as a suped up iPod touch) - 33 applications installed, updated to 2.2