IPhone SDK terms updated for developers

Apple is facing a huge threat from their rival "Cydia" who are releasing a lot of Apps before they are available in App store. The secret behind most of the apps available in cydia are either rejected apps by Apple or developers who don't want to go through Apple. This has forced Apple to change their IPhone SDK terms which restrict the developers to develop only for Apple and sign the updated terms. The updated terms :

"Applications developed using the Apple Software may only be distributed if selected by Apple (in its sole discretion) for distribution via the App Store or for limited distribution on Registered Devices (ad hoc distribution) as contemplated in this Agreement"

Apple are now entitled to take legal actions against developers bypassing Apple and build the business through releasing apps to competitors like Cydia. Sure, SDK developers will have an alternative for Apples Terms.