Apple says it needed to kill the clones in order to survive. It claimed that the clones were costing Apple money instead of making them money. Apple said it could not get the clone makers to agree to pay the higher fees needed for the relationship to work. But even if it is just as Apple stated, it remains a very ill omen for Apple's future. By killing the clones, Apple undid what many considered to be one of the most positive developments in the Mac platform in several years.
Consumers generally benefit from healthy competition - it spurs products to get better and cheaper.
With the loss of the clones, this competition evaporated - and Mac users were the big losers. Apple also lost its credibility with clone manufacturers - which means that, if Apple should ever decide to reintroduce clones, it is likely to find no one willing to risk investing in them any more. Once burned, twice learned. The clones are likely gone for good. If Apple had accepted, many people feel that the Mac might be where Windows is today.