To be fair, if you develop the app yourself you can install it on your iPhone without any problem, you connect your phone and install it through Xcode.
My guess is that Apple thinks this route could be used to circumvent the App Store.
Correction: then your apps will last a year before they expire. You'll still need to reinstall yearly.
So if you want to develop an app for iPhone you can do it no problem, as long as you buy another apple device to code it on, pay Apple the subscription fee to join the developer program, and then you can install it on your Apple phone.
I agree that the hardware requirement is bullshit and mostly unnecessary.