Good news for Flash lovers, Apple released a new version of its SDK license agreement recently. In this new release Apple amended the infamous section 3.1.1 that bans the use of 3rd party languages to develop iPhone applications, the new section now allow developers to use the API in the manner prescribed by Apple and prohibits the use of private API. So now onwards iPhone apps made using iPhone Packager in Flash CS5 will not be banned for the mere fact that they were not originally written using Objective-C. After this news Adobe announced that they are resuming development work on this feature for future releases of Adobe Flash CS5®.
Reason for this change of mind of Apple is not clear. May be due to competition from Android, or fear for some legal hassles etc. Whatever may be the reason, its certainly a great news for Flash developers because now they can easily develop applications for iPhone and the iPad by using ActionScript 3.0 and Adobe Flash CS5®.Reference: http://blogs.adobe.com/conversations/2010/09/great-news-for-developers.html, Republic of Code