http://sixrevisions.com/web-development/html5-iphone-app/
Your users can't install closed binaries except through the app store, but you're all about open source, right?
So make your app using HTML5 like LinkedIn or Facebook, and simply bypass the app store.
I think it really is only an issue with the (L)GPL.
That's a limitation of the license, not of the app store. Why should the app store have to accommodate all sorts of licenses?
Nobody reads license info anyway - I, and probably everyone else except Richard Stallman himself just click on OK and hope for applicable laws to protect me in case the license should contain unacceptable terms.
iOS got this right, and the GPL got it wrong.
Agreed, however, that there are other licenses which are less restrictive on those that distribute object code.
If you want to make it so other people may use your stuff, just put it under such a license. That's what I do - please, share and use, here you go. There are no strings attached.
If I see the words GPL, or even LGPL, I stay far away from it. I don't want some nutcase to sue me years down the road when my software has become popular, just because I wanted to save an hour of coding time for the 1.0 release.
Whether or not one individual prefers copyleft (viral) or non-copyleft licensing is largely due to their intent - not to garner the maximum number of users, but to ensure that anyone else who might profit from their works affords their users the same right. And, if you really wanted to people to do whatever they pleased with your work without regards to your desire, you would've made it public domain, not MIT-licensed. You chose a license because you had a desire that the license enforced.