The restrictions on JIT aside, my understanding is that there's also a separate rule that you can't have any web browser engine except the system version of WebKit.
With WebKit, its update once, secure all apps everywhere.
https://9to5mac.com/2011/10/21/jobs-original-vision-for-the-...
Let me explain. Right now it's WebKit vs Blink (Chrome and all Chromium-based Browsers, including Brave, Vivaldi, Opera, Edge, etc.). If Blink were to be allowed on iPhones... you'd see Chrome become even more dominant. Firefox is dying on PC, has less than 1% mobile share, and is no competition in this case.
Requiring WebKit is what prevents an even greater Chrome monoculture.
The iPhone was a whole new platform where Apple had 100% power on where it could go; opening the door to third party browsers to bring their domination to the platform from the start must have been seen as suicidal.