If you are a registered dev member you can code and upload whatever you want. You just can't distribute it in the app store. You can do adhock distribution to students, etc. You can also share the code.
I agree a jailbroken phone is wide open to hacking and misbehavior by developers. Just look at Android.
A quick search would reveal the Apple iOS change that no longer allows you to use it in autonomous vehicles (no not like the Parrot that has no idea where it is). The only way I see you doing this is jailbreaking it first and then doing it.
Be warned though, 3 days in to "freedom" I received three new icons in my springboard, one called TrustMe. Immediately restored to previos date to wipe it all off.
To be honest, I don't know why anyone hasn't done it yet with the iphone 4. You won't be able to distribute the compiled code the app store, but you could build one easily. The only practical way out for the control of servos is the headphone jack. Heck, a kalman filter may already be implemented in the phones gyro api.
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I agree a jailbroken phone is wide open to hacking and misbehavior by developers. Just look at Android.
Be warned though, 3 days in to "freedom" I received three new icons in my springboard, one called TrustMe. Immediately restored to previos date to wipe it all off.