From Apple’s News and Announcements for iPhone Developers page:
Use of [HTTP Live Streaming] is now required for all applications which deliver streaming video. You must include a low quality stream of no more than 64 Kbps for your app to resort to when network conditions demand it, along with the higher quality streams you want to deliver to your customers when the network can support it.
Many developers may be upset about this but Apple forcing them to adopt a new and better standard pushes the overall ecosystem forward.
Also, it helps that HTTP Streaming is a good standard. I will probably change my tune if Apple tries to pull this with a poor standard.