No, HTML5 audio actually kind of worked in iOS 3. But Apple plugged that whole and made sure it was fully sabotaged in iOS 4.
And don't think I'm not affected as a developer – all the time people use our product, Hype, to create content that includes audio and video elements, and we're stuck explaining to them the behavioral differences between desktop and mobile browsers.
Apple's not evil; they're pragmatic. Right now, users needs win in this situation. Hopefully we get a more flexible solution in iOS 6.