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Technically, it's a simulator, not an emulator. It's a representation of a static device in native code. It doesn't require a copy of the original device's ROM, nor does it need to load any external code.
I know you're right, but it just feels like Apple being to restrictive the whole time.
Free market capitalism is kind of like a democracy in which you vote with your cash. If you don't like how a company operates, don't give them your money :)
I still think that we should have some emulators for the iPhone, at last for Palm so we can have Bhajis running on the iPhone. That would be awesome.
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