Apple puts legal knife into Adobe's CS5 - New iPhone Developer Agreement Bans the Use of Adobe’s Flash-to-iPhone Compile

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deckeda wrote:
You're describing an alternative to what Cydia provides, because what you propose wouldn't see the light of day in the AppStore in the first place. Apple doesn't need to limit the dev tools someone uses in order to reject apps.

If that was the case, they wouldn't need to modify the EULA to restrict it.