That may be true but it also means that applications written with Unity3D, Torque and Unreal will also be banned.
All of those systems are exactly the equivalent of Flash. They each use a C/C++ code base engine to allow people to write games in another language that runs cross platform. For Unity3D that language is C# or any language that runs in Mono. For Torque that language is TorqueScript, for Unreal that language is UnrealScript.
- Flash is an intermediary translation and compatibility layer that runs apps written in ActionScript
- Unity3D is an intermediary translation and compatibility layer that runs apps written in Mono related languages like C#
- Torque is an intermediary translation and compatibility layer that runs apps written in TorqueScript
- Unreal is an intermediary translation and compatibility layer that runs apps written in UnrealScript.
Here's a list of 42+ SHIPPING games on iPhone built on Unity. http://unity3d.com/gallery/game−list/
Here's a list of 68+ SHIPPING games on iPhone using Torque http://www.torquepowered.com/games/torque−2d−iphone
I'm sure there are countless others as well as several Unreal games in development.
Section 3.3.1 has effectively banned all of these games.
That also doesn't account for the hundreds or thousands of games not using a commercial engine but still using a language other than C/C++ as their core language. Many games use languages like Lua or GameMonkey or custom languages.