organic production is no more expensive than conventional. One would hope more orchards would go organic.
As for why the EPA made this move: it attests to how overwhelming the evidence against this pesticide is and how dangerous it is, because as you said, the Bush administration resists any anti-industry move. In fact, conventionally grown apples have long been on the top 12 list of produce in terms of exposure to pesticides because of this chemical. I first heard of the dangers well over 10 years ago - and I'm not a specialist - so it took the EPA a while. More and more pesticides are being banned, only because the risks are finally being studied (and not at the expense of the corporations profiting), and also because with a few of the more dangerous chemicals, epidemiological studies can pick up the health effects.
Often, however, health effects are so delayed in time, it is almost impossible to find a link - such as a link between farmers exposed to certain pesticides and risk of Parkinson's disease. finding a link as in the case with the farmers is quite rare = and the failure to find a link is interpreted by the government as evidence the chemical can stay on the market, even when no published studies exist ascertaining that the chemical is safe (and industry isn't required to publish the studies they do, even when they have good reason to suspect the chemical is dangerous). (Of course, there are plenty of incidents where chemicals are known to be extremely dangerous, such as dioxins and PVCs, to both employees at plants, as well as the environment, yet we keep these products on the market due to industry lobbying).
http://www.organicconsumers.org/OFGU/parkinsons060105.cfm; http://www.urmc.rochester.edu/pr/news/archive/park.html).
We know even *less* about how multiple chemicals affect people who are exposed to them - the results can be very different from when someone is exposed to just one or the other chemical (this is the case with the farmers and parkinson's).
Europe has taken a huge step regarding new chemicals coming on to the market (extensive safety testing is now required) but last I heard, the laws aren't retroactive - although Europe is banning at least as many chemicals as the US is.
It's amazing, however, that we don't simply "ban" - we "phase out" - even knowing how dangerous these chemicals are.