Adobe air apps work just fine on iOS 7- iPhone an iPad why are people under the impression that it can't be used to develop iOS apps?
Because at one point Apple started banning all use of virtual machines and external runtime, including Air and it has gotten a lot of publicity. Since then they have reverted their policy but a lot of people who didn't plan to use Air in the first place continued to hold on to the old info. One of our my apps uses Air so I have been following this very closely.