You enter your iPhone's unique ID to produce an 'installer' (double-clicking it opens iTunes and does some voodoo there, and the next time that specific iPhone is plugged into that device, that program is transferred). That's how you debug and beta test on a real device. I believe this system has been expanded a little bit recently for the purpose of sending apps to reviewers, but the files you produce are still signed by apple, and there's a limit on how many phone IDs for beta / review / debug builds they'll sign. Trying to use this system to release an app that runs afoul of the app store policies is thus doubly impossible: When apple figures out they'll just shut you down, and even without them explicitly noticing you'll run into the limit quickly.
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