I'm not sure why this happened now - pressure from Android, the continuing levels of bad PR, threatened legal action - but Apple has caved in on development tools for IOS:
All development tools - including Adobe Flash CS5 - are now allowed, as long as they do not download any code. Apple claims this will give developers the flexibility they need, while at the same time preserving the security of the iOS.
In the wider development space, this means Flash - Adobe can dust off whatever work they had for IOS, and ship it (whether it works any better than this remains an open question, of course). It's also good news for Smalltalkers. The work John McIntosh has done to get a Squeak port to IOS is alive again, and Scratch might have a chance at approval - although the ban on downloading executable code might still be a problem there.