MonoTouch is alive and well
escoz.com
escoz.com
I'm in two minds on this. Obviously, the somewhat democratization of app development is a good thing, but it makes Apple look petty for making rules, then only enforcing them selectively so as to keep Flash out of the app store.
Disclaimer: I'm writing apps, but using objective-c.
My bet is that they're still even allowing flash apps in the appstore, like they were before Adobe announced the release of the app. I haven't heard anything, but I'll look for that.
I have written obj-c code as well, and I would have no problems moving to that language, but MonoTouch allows me to be much much more productive, specially when developing enterprise apps, which is what I do day to day. I have tried obj-c, and even tried porting MonoTouch apps to obj-c, and there's simply no comparison.
Relying on any exclusive outlet that doesn't care if you live or die has an implicit risk. It's the same thing with Facebook and Twitter apps. You are more-or-less as their mercy.
As C# is an open language standard, I would be delighted if Apple were to embrace and extend it.