The ad slot is purely a revenue tool, not a discovery aid. It forces developers to pay just to defend their own branded search terms. App Store Search ads are a hidden increase in commissions that you either accept to pay by bidding on your own app's name, or omit at the expense of having competitors show on top of you all the time, stealing your revenue. It creates a significant drain on resources for indies, to the point that it's often no longer worth it to bother creating apps.
That's why Apple is now doing everything in their power to make app development easier, but that will more likely increase quantity and not necessarily quality, as it only deepens the ecosystem's problems by inviting more noise. The practical reality is, if you are not VC-backed and if you are not playing the heavy ad spend game, the App Store is more of a barrier than anything else.
It seems plausible that casual browsing and downloading remains a significant use case. Apple surely wouldn't design the App Store focusing on discovery this way otherwise. Not sure about the #1 activity hypothesis. What I'm certain about though is that the App Store is deeply broken and they've started rushing down the path of platform "enshittification" (real thing) where online platforms become less useful, less enjoyable, or less user-friendly.
Paying to parasitize the brand recognition and trust of a competitor has become the norm. he comparison to retail product squatting perfectly illustrates why this feels like an unfair infringement, not just aggressive marketing.
An interesting hypothesis. Maybe the deeper question is, does the virtual world really need to reflect the physical world in a very accurate way, or does it suffice to represent a subset of that? And then, how accurate does it have to be? Does it map 1:1 or are there indirections that would work well to convey meaningful information and trigger actions that make sense?
I guess many important clues get provided implicitly. For some reason you want to mute notifications for a while, so you do that, and your avatar reflects it, but it may not be necessary to truly be in headphones mode whenever you happen to be wearing headphones, or vice-versa.
Our goal is to simplify things and avoid artificial complexity wherever possible.
This is where it gets interesting, because many of the things you've mentioned are things that we're spending a lot of time on thinking through.
At the moment Spot has "headphones mode" which signals to others that you prefer not to be interrupted. It also temporarily mutes notifications and other things, just like putting on real headphones in real life would. We're very conscious of these things, and coming from UI/UX research I believe it's paying attention to these fine details that add up to a great product overall.
Disclaimer: I've joined Spot as a strategic/product advisor and consultant, and I'm very excited about the space, product and roadmap.
Working from home since late 2008 myself, I've felt the drawbacks extensively. So when I discovered Spot for the first time, I felt that this truly addressed many of the challenges of working from home. Some of these are the dilution of corporate culture, the loss of rituals and ceremonies, and the loss of chance encounters and spontaneous conversations with coworkers. People working from home over long periods of time tend to feel increasingly more disconnected and unseen.
Location and presence can be powerful enablers and are great ways to communicate what's happening in a team, resulting in richer social interaction. I can imagine how nice it is for a team to see who's in the meeting room right now, or who is hanging out in the lounge area and likely up for some small talk. I can see how that would make me feel more connected than just staring at a bunch of channels or joining video calls.
I'm especially excited about the greater long-range potential of a powerful spatial interface to communication and collaboration. There are many things and nuances we are paying very close attention to in order to bridge the gaps and make it feel as natural as possible.
Another aspect I like a lot here is that the design of the space to which you invite people conveys something about who you are as a company and team. I remember getting invited to Dropbox HQ a few times and the space itself had a personality to it that I liked a lot. I can imagine inviting clients and letting them arrive in a virtual lobby with photos on the walls highlighting some really cool things about our product or so, and then picking them up to walk through our virtual space to the meeting room while telling them about the features our engineers are currently working on as we pass their desks.