I personally know iPhone/iPad developers who are thrilled that Apple is blocking Flash apps compiled with CS5. That just saved them from competing with a boatload of crappy apps written by hack script programmers. I’m willing to bet that more Objective-C programmers than not like the new restrictions in section 3.3.1. The only reason not to like it is if you are too lazy to learn how to write Cocoa apps, or you wanted to pull the wool over the eyes of your users by developing apps that can be easily ported to other platforms. Neither of those scenarios help Apple, and they sure wouldn’t help true Cocoa developers, either.
What Apple is doing here, then, is PROTECTING its current developers from an influx of competition from less worthy programmers. It is also protecting users from confusion, while increasing the likelihood that new apps will take full advantage of new features in the iPhone OS in the years to come.
Again, the only losers here are the ones who wanted a quick and easy shortcut into the Gold Rush. There’s nothing stopping any of these Flash developers from simply learning how to use Apple’s tools instead of Flash.
The only question remaining is who Apple decides to apply this rule to, other than Flash developers. My guess is that game companies that have been using various tools to assist with development will be allowed to continue to do so. This is mainly a shot at Flash and .NET.
So I don’t see this as a game of chicken at all. What I see is Apple holding a Royal Straight Flush, while Adobe has a pair of twos. You’re supposed to bet big when you know the other guy is bluffing.