The developer Alexander Clauss says he'll comply with Apple's wishes by disabling third-party code. But he's puzzled by the Jobsian logic.
"I really can't say that I like Apple's decision, and technically it doesn't make much sense," he wrote on the iCab blog. "'Modules' for iCab Mobile are simply a more comfortable variation of bookmarklets, and these are still allowed by Apple (and I assume Apple cannot forbid that the user will save and use bookmarklets)."
You can find iCab here.
iCab has a long history. It started out as CAB on the Atari, moving to the Mac in 1999. It was the only browser in development for the original MacOS, long after every one else had moved on. Clauss released a Cocoa version for Mac OS X three years ago. ®