> Apple doesn't need to be persuaded about HTML5, developers do.

This is only really true if you're not interested in the 1-3g users. The reason developers didn't take to the HTML5 solution was that it was too slow for anything non-trivial.. I don't personally even care for it when making trivial applications, due to the half second delay before interactions make it to your javascript events in WebKit on my 3g phone. The linked game (which isn't particularly complicated) is completely unplayable on it.

But sure, on the current (3g s) and future gens, it does seem like a reasonable alternative.