It’s not really a case of Apple being big and fat – they have a current feud with Adobe which has been a long time in coming and reflects the lack of feature parity across their ranges on the Mac. I have little sympathy to be honest.
Pers. corr. with some folk in Cupertino pointed at CS5 being a no-no but others like Unity *may* be OK because the final compilation is handled within XCode.
I find it far more worrying that Apple is trying to dictate what developers can and can’t use. If someone wants to use flash to compile to iPhone what do they care? They own the development process now as well as the phone that the consumer paid for?