The difference with this app is that the ide is really a labor of love, and it is super fun to code in. Not that iLuaBox isn't, but all of the little features for tweaking colors and editing sprites are brilliant. The graphics and audio engine don't hurt either.
For those complaining that there isn't a companion engine that you can take the code out of codify and release actual games, you should take a look a corona. The api in codify is not so big that you wouldn't be able to clone anything that you made in it to another platform relatively easily. I do agree that there should be more lua based gl engines for iphone though. I am working on one, but as of yet it is totally for my own use, but only by virtue of the fact that it doesn't come with nice build scripts.
The other thing that some commenters miss is that you can use copy and paste in this app. That will open the gates to sharing code, it is as easy as: select all, copy, switch to safari, go to pastebin, send link to someone else. I suspect that some of the time the app spent in approval was them thinking about that.
-- edit for not being a jerk to iluabox