I'm having trouble feeling any sympathy for the Scratch community over the news that Scratch has been removed from the App Store for iPhone/iPad, considering their own lack of good faith and transparency in licensing, particularly for a publicly funded educational project.
This certainly is an excellent example of why Apple's mobile devices aren't appropriate for schools. As a potential consumer, I don't really care. I didn't, for example, worry about whether or not my Wii would run Scratch before I bought it; I'm not concerned that I can't install it on my cable box. But there should be a huge difference between the requirements for educational and consumer computing.
Also, I find this kind of amusing from the perspective of Mark Guzdial's concerns about usability and open source software. Certainly Scratch does not respect Apple's UI design of the iPhone/iPad, and maintaining high standards of usability and consistency across apps is one of the main reasons to exclude alternate methods of writing apps for the iPhone/iPad.