"We no longer see a need to pursue our case," Apple spokeswoman Kristin Huguet said. "With more than 900,000 apps and 50 billion downloads, customers know where they can purchase their favorite apps."
The way Apple abandoned this case is basically a slap across the face of Amazon. Their 'appstore' is so inconsequential that Apple need not waste it's resources any further trying to stop them from piggybacking on Apple's branding success.
Nonetheless, the original defence for the usage of 'appstore' was that the term had become so generic that customers would not be mislead. I find this line of thinking to be laughable! One company can steal another's ideas and implementations (Samsung, I'm looking at you) and then simply wait until trial, at which point the IP in question has become so diluted that it is, in fact, generic. Does no one else see how crazy this is?
I know I find that infuriating as an on-looker. I cannot imagine how it would feel as the inventor of the idea.
EDIT: Repaired the article.