"Apple reserves the right to refuse..."
I'll bet there's a line in the developer agreement to that effect. A catch-all defense used at times like this. Shouldn't come as any surprise.
But I offer this thought: do you feel like you might tell your kids or grandkids that you remember a time when any of your friends could try out the software your created on their own devices? When anyone had the ability to do whatever they wanted with their devices, without having to agree to a license agreement first?
You can do this with the iPhone right now so long as "your friends" doesn't include all iOS owners.