Application design usually means working with an abundance of graphics, and when designing applications for multiple screen sizes, designers have to keep in mind how those images will scale when deployed across different resolutions and aspect ratios. A button that looks great on one screen might have awkward corners or warped text when scaled to fit a screen of a different size. To avoid this, designers often create multiple versions of their graphics in various sizes. While this allows for tight control over the visual presentation of the graphics, it also means extra time, effort, and resources.
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OK .. so Apple never came out and specifically said that you couldn't use Lua, but the terms of the iPhone developer license were such that incorporating an non-Apple language interpreter was in violation of the agreement.