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They do, but this isn't really downloading 'code'. "Apps that download code in any way will be rejected", but you're not downloading it: you're executing JavaScript, which is totally permissible.

To put it another way: this idea isn't unique, although the packaging might be - there are several frameworks that do similar things (some proprietary internal tools, similar to how this seems to have started) with live apps on the store.

Actually I think the rule is more like - the only scripting is javascript and it must be downloaded and executed by a UIWebkit view.

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