Visual Studio get's thumbs up for iphone app development whilst flash is still left in the cold

Can this be true?
http://www.theregister.co.uk/2010/05/27/ballmer_wwdc/

Insane as it may seem, it looks to be true. Apple and Microsoft are getting in bed together and allowing VS to output OSX and iPhone apps. It seems like it should be a conflict to the recently updated iPhone SDK license. I guess the caveat is that Microsoft will use Apples framework for the apps whereas Adobe wanted to use their own.

Straining at gnats I tell ya. Why doesn't Apple show it's true "openness" and relax a bit on the licensing. I think Apple is just more scared of Adobe (flash) than they are of Microsoft.

Pick your poison I guess..

UPDATE:
So it seems that rumor may be a bunch of fluff.. Check this tweet from M$ http://twitter.com/Microsoft/status/14850981422
I guess it's a wait and see.