I can sort of understand last year, Apple not wanting to provide live demos of iPhone at the show. The device was unfinished, and Apple is against showing off unfinished products to the public.
However, this year, not attending makes no sense. Apple will announce iPhone’s (and iPod touch’s) SDK this Thursday. Having a presence at CTIA would allow for developers to walk over and gain some real-world connections with Apple, and would only improve developer relations. They don’t even need any new products to show, arranging for a few workshops and showcasing iPhone’s new SDK is the thing to do at CTIA for Apple.
However, they aren’t going. Apple wants to hold off until WWDC in June for some real-world connections with developers on the SDK. That, in my opinion, is a bad decision. There would not have been a high cost to attend CTIA, and it’s a missed opportunity for Apple.