I'm surprised Apple agreed to show the source code in the first place. If I'm not mistaken the software on the iPhone is licensed and not sold, so end-users would have no right to the source code, right???
In this case the license isn't the issue. The court isn't bound by the license, and if it deems it necessary for evidentiary purposes, over and above any objections Apple raises, then it will order Apple to turn over the code.
I am guessing that these guys:
http://www.hoffmanandlazear.com/
who represent the plaintiffs, who are asking for "not less than 600 million dollars" for having their hacked iPhones bricked, are going to lose to Apple's lawyers in High Comedic Fashion.