The problem is that Apple's terms add restrictions, which the GPL prohibits. If the author had uploaded the code, Apple's defense could be "Well, they agreed to

The problem is that Apple's terms add restrictions, which the GPL prohibits. If the author had uploaded the code, Apple's defense could be "Well, they agreed to the terms, so their item is licensed under the combination of our terms plus the GPL's terms, even though the GPL claims that it can't be modified." Unfortunately, that doesn't work AT ALL if the work includes GPLed code from a third party. The solution is to create an "Itunes Open Source License" which says "The terms of the GPL are superior to the Itunes license when they do not conflict, but the Itunes license is superior if they do." Or, alternatively, kick Apple's butt until they stop trying to restrict freedoms granted by the GPL. At that point, the usage terms will be compatible with the GPL.