Technically, the rule is "no interpreters that download code". To get around it, it bundles a decent chunk of the if-archive in the app and then registers as something that can open z-machine game files (so you can use Frotz to open a game from Dropbox, after downloading in Mobile Safari, etc.).
Funny thing is, my primary "in bed" reading device is also my iphone -- light, good screen, and easy to shut down when I am done.