Whoa. Apple has announced they've revised some of the most controversial provisions of the App Store developer agreement—including section 3.3.1, which banned apps created using third-party tools like Flash. Executing code on the device still is not allowed, but so long as all apps submitted are native iOS code that meets Apple's review guidelines, they'll be cleared for sale.
Oh, and about those App Store review guidelines: after two frustrating years, Apple is going to release them. Hopefully, this means no more spending time and money developing an app that will never ship.