Yes it works in iOS5 - so far have only tried Mario Kart and briefly zelda. It looks like this was just a compatibility fix for IOS as speed seems to be unchanged (lower than ideal framerate in both games but still playable). There's also still no landscape mode support
Zodttd says there is a large update coming with performance inrease, ipad support, and other features but I wouldn't hold my breath. Still its great that it was released for ios5 and he did what nobody has done so thanks to him!
EDIT: if you turn off frameskip (0), it smooths out quite nicely however sound stutters.