You need permission from Apple on an application by application basis. Interpreted code is to be used in a "minor way" for "minor features". Thus, writing an entire iOS app in an interpreted language (such as Lua) does not seem likely to be allowed.
I'm not a lawyer though. Of course, Apple is fickle and contradicts itself often. Indeed, I would not be surprised to find Titanium gets free reign and Corona does not, or vice versa.
Indeed, this is pretty much specifically tailored towards games (which are scripted using e.g. Lua but not entirely written in it) or things like emulators.
Apparently, Apple has decided to go over Jobs's dislike for games and let them grow further on the platform.
So does this 100% clear the way to use tools like Unity or Appcelerator? I'm particularly interested in Appcelerator (starting a droid/iPhone app in a few weeks) and there isn't a clear statement on their website about this change.
Update: I've emailed appcelarator about this change and requested clarification; I'll update again when I hear back.
Update 2: still no word from Appcelerator. I've spent some time digging through their forums and I think they just don't know what's going on either. It seems like they are just waiting to see what happens today when people start to submit iOS 4 Apps. I guess we'll know the answer becaus of this either way, hopefully soon.
Either way I applaud your decision.
That's not a slight against either of you. Your point to Apple is that their platform will live without your app. Their point to you is that the other developers will divvy up the billion dollar cheque they're already written.
If that got implemented on a larger scale, the concerns of developers who say "I don't want to develop an app, then get it rejected with no warning" could be alleviated.
A step in a more moderate direction benefits everyone.