Just wrong. Basically, any third party development app that isn't objective C/Apple's is prohibited.
Apple's banning of Adobe flash products (and other third party environments) from the iphone are two and distinctive things.
1. Flash content (video, vectors, web stuff) running in a browser or other other app that pulls in separate content.
2. Apps that aren't "flash" but happened to be developed using Adobe's Flash software. In fact, these apps may have have none of the traditional flash content.
THESE ARE TWO VERY DIFFERENT THINGS PEOPLE. Steve Jobs cites different reasons for each situation.