Flash on the iPhone
Technically speaking, these do appear to basically be within letter of the SDK agreement, modulo the fact that Adobe appears to making private API calls. They should be able to do what they need to without making those calls, so ultimately that should be a non-issue.
Now, the notion that what this thing emits is indistinguishable from something Xcode emits is laughable. They are very different, and not in a good way. While the apps may get acceptable frame rates on an iPhone 3GS, they don't on earlier hardware, and they almost certainly uses substantially more power battery than native games.
He’s looked at an IPA file and found some interesting details.
