It still doesn't beat the "Objective-C Only" fiasco..does it?
That said, it really should require us all getting up in arms over it for Apple to stop stuff like this. They shouldn't have made such a policy to start with! Very worrying for the future of the platform...
A law is only as good as it is enforced. There's a huge amount of laws out there that would be very controversial if they started getting enforced. For example, many states still have crazy/puritanical sex laws on the books.