We agree with others that the intent behind the language is probably aimed at Adobe and preventing Flash from landing on an iPhone/iPad and bypassing or otherwise circumventing the iPhone SDK.
As a pre-requisite to using Titanium, developers must install the Apple iPhone SDK and Apple XCode development toolchain. They must install Titanium on a Macintosh and they must have a valid Apple Developer membership before they are even able to create a Titanium-based iPhone/iPad application.
Titanium produces a valid XCode project at application creation, generates Objective-C (and sometimes C/C++) and executes the xcodebuild to compile your XCode project into a native application using Apple’s published APIs. We launch the Apple’s iPhone simulator to test your application, create the correct Apple binary for integration to iTunes when testing your signed application on device and use all the certified Apple tools for signing to create the final distribution. The developer must obtain their own Apple signing certificate for creating applications with Titanium and Xcode and the developer uses their own Apple iTunes Connect membership and login to upload the package to Apple for submission.
We believe Titanium adds value to the Apple Development ecosystem and enhances the Apple platform for many thousands of developers around the world. As we always have, we will continue to work with Apple to ensure we stay in compliance with their terms of service.