Please read what I said, not jump to conclusions. I didn't say the iPad couldn't do it - I said that there are compromises in doing so that Apple probably didn't want to make.
You are so confident that an iPad 1 can easily do it because somebody wrote some code that hacks it in. That's not tested code - that's a proof of concept, a demo, a hack. And there is nothing wrong with any of that - I appreciate a good hack as much as anyone else. But let's not kid ourselves into believing that it's necessarily good enough for Apple to ship it out on millions of devices as the default way of doings running iPhone apps.
Just because it works for you doesn't mean it will work for everyone else. If you've written any significant amount of code, especially code that runs on a wide variety of setups, you'll understand exactly what I mean by that. If not, take this as a learning opportunity.
And the idea that Apple would keep back iPhone apps artificially to sell newer hardware is laughable. When the iPad came out, the 3GS was the flagship phone. We hadn't even heard of a Retina display yet. When the iPhone 4 came out, the 1st gen iPad was still being sold. If Apple thought that using the Retina graphics was a viable possibility, they would've updated the iPad to do so.
The fact that the Retina display iPad uses the Retina versions of iPhone apps doesn't prove that Apple was holding back the older iPads. The jailbreak app doesn't prove it either. All it says is that Apple felt for one reason or another that using Retina iPhone apps on non Retina devices wasn't a good idea.
