Suppose my application includes some automatically-generated code whose source is a Python script. Or uses the Guile interpreter for initialization or scripting. It seems that both could violate the terms of the agreement.
The conventional wisdom appears to be that this is an attempt to scuttle Adobe's ActionScript-to-iPhone development kit. Seriously, Apple? Your little walled garden isn't safe unless people develop in a C variant? It's bad enough having programming language flamewars without getting the lawyers involved.