OP is not suggesting they ban all IAP, just consumable ones, which tend to be the most abusive. It would be a bold move and lead to an increase in quality for sure. It would also gut companies like zynga who design their games around them.
Looking at Candy Crash and how Apple incessantly pimps it in every way possible, I think it's bloody obvious that they are getting A TON of money from consumable IAP commissions.
I don't think anyone is questioning whether Apple makes money from consumable IAPs. What we're questioning is whether that factor dominates all others, which it observably does not.
As far as Apple promoting Candy Crush, there's a question about whether this is a cause or effect of its popularity.