My thanks to those who took the time to explain that this is would be a suit over the SDK license agreement and the fact that Apple does not wish to let transcoded Adobe CS5 products be produced for their system.
I guess whether this suit comes to light will depend on whether or not the lawyers decide it is in the power to dictate development tools in their SDK license agreement. It would make an interesting precedent - do we really want to live in a world where all Windows software must be developed with the Visual Studio IDE (integrated developer environment)? Haven't we already accepted that with console games? Isn't it already a reality that proprietary auto parts cannot be manufactured by a 3rd party unless given express permission/licensing by the proprietary patent holder?
As to those knocking Flash, all I will say is "casual gaming market". What do you suppose we replace bubblebox, newgrounds, kongregate, armorgames, and hundreds upon hundreds of other casual gaming web sites with? (For those who doubt the power of the casual gaming market, I say "Wii".)
Again, thanks all for giving me something to think about.