Apple has one of the most valuable brands in the world. Why do they want to associate it with this tasteless nickel-and-diming? If nothing else, surely this is bad for business over the long term. Gain a few low-value subscriptions, lose a few high-value hardware purchases.

They do this exactly because they are such a valuable brand. Their customers are generally pretty well-off and thus a really highly desired target community: People with plenty of money to spend and who already proved they buy Apple products. This is the creme de la creme of advertising targets.

It's also why so many companies love to "partner" with Apple. Like the goldman sachs credit card, the new LG promotion with the homeview etc. Note that this comes hot on the heels of the LG "We own the glass" scandal. Yet Apple finds it more important to promote them. I'm sure LG pays Apple for this "partnership", not the other way around.