... DRM protected, this would likely violate the open source license. ...
The MIT license says nothing about DRM, and this isn't even DRM to begin with. It's code signing. The iPhone wants to run signed binaries. This isn't against any reasonable license agreement.
iPhone Apps are linked to appleid accounts.. otherwise I could just copy applications freely between any iDevice owned by anyone without purchasing more than once. This is Copy Protection.. otherwise DRM. Apps
do have DRM applied if they are in the App Store.
GNU Public License had a problem with it from what I heard.
http://www.wired.co.uk/news/archive/2010-11/01/vlc-could-be-pulledThanks for the clarification on the MIT license though.