I guess the question is why they couldn't release the new requirements, and then Adobe can just re-integrate it into their compiler to meet the new iPhone OS standards, rather than just saying no.
Unfortunately, in this battlefield (iPhones vs. Flash), Apple has the upper hand, and it's clear that they're not shy about using it. Nothing wrong with that, it's just business. Adobe either needs to innovate so that Apple has no choice but to support them, or they need to strike back by completely removing Photoshop and other creative suite functionality from Mac computers. But they've already said that that's not an option, so I guess they just have to bend over and take it.
Or, they could try and sue Apple in the EU, and force them to make something so that Apple is forced to carry/support a competitor's product...
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