I'm a registered apple dev (personally and through my company) and have published a number of apps written in Obj-C and am working on a game in OpenGL. While some of the apps could have benefited from CS5 (and we were very much waiting for its release so we could pass it around to more iphone devs here at work), it would also open up a ton of competition from "little kids" making bad apps with stolen copies of CS5. Even though most of the apps wouldn't get through the review process (let me say that again - most flash apps wont make it through the review process even if they allowed cs5 to compile and submit apps), it would still slow down legit submissions because the reviewers would be busy reviewing a lot more submissions.

If you haven't submitted to the iphone store, you probably don't realize that Apple is already super, super limited in what they accept. If you have a table view controller (picture the iPhone mail program), and the cell opens another view (when you click on the specific email message you want to open), it MUST have some arrow icon off to the right to indicate to the user that a new view will be opened. Failure to do so is a violation of the user interface guidelines and can (will) get your package denied. If they're so anal that they deny programs based on icon use conforming with the rest of the OS, why would you expect them to allow third party compilers to completely and totally break the consistent visual user experience?

To over simplify this with an example everyone will pretend not to get, it's like MySpace and Facebook. Sure, MySpace lets you do anything you want with your profile, but that gets really old, really fast, when you realize most of what people want to do is annoying garbage. In the end, people chose Facebook because it was clean and consistent, no annoying noise or flashing video every time you load a random page. So, too, will people eventually realize that Apple's intention is to protect users from garbage and guarantee consistency through total control.

In the end, if you don't like it, you don't sue, you buy a droid.