I believe that's a violation of Apple's developer license. There was a company using a similar trick to bypass the app store, and they got in hot water for it a while back. (I remember it being reported here but can't find the posting.)
Yup, it is. If you're remembering what I was remembering, there was a developer who created a adhoc profiles and would distribute their app 100 at a time, then remove the device and start over. This was before Apple's rolling hundred devices was implemented.
But if I understand it right, in that case the developer was distributing the app, signed with his own developer's account, abusing the 100 devices you have for testing.
What I meant was to let the users be the developers, and sign and deploy it themselves.
If you didn't care about selling it, you could just dump the source somewhere with a little installation script. I can imagine many IOS users who would like to use emulators or other banned apps would happily pay $99 and compile their own stuff.
There was the other example, and then The Omni Group distributed a "Key Gen" for their own software that would enable Pro or unlock their free apps for people who had already purchased the app outside the ecosystem. Apple shut that down too.
