It seems this is now something developers are allowed to do: the iOS Developer Agreement was changed yesterday and appears to have been ammended in a such a way as to make embedding a Python interpretter in your application legal:
SECTION 3.3.2 — INTERPRETERS
Old:
3.3.2 An Application may not itself install or launch other executable
code by any means, including without
limitation through the use of a
plug-in architecture, calling other
frameworks, other APIs or otherwise.
Unless otherwise approved by Apple in
writing, no interpreted code may be
downloaded or used in an Application
except for code that is interpreted
and run by Apple’s Documented APIs and
built-in interpreter(s).
Notwithstanding the foregoing, with
Apple’s prior written consent, an
Application may use embedded
interpreted code in a limited way if
such use is solely for providing minor
features or functionality that are
consistent with the intended and
advertised purpose of the Application.
New:
3.3.2 An Application may not download or install executable code.
Interpreted code may only be used in
an Application if all scripts, code
and interpreters are packaged in the
Application and not downloaded. The
only exception to the foregoing is
scripts and code downloaded and run by
Apple’s built-in WebKit framework.
