Hi Peach,
I don’t have any direct experience with iAds, only 2nd-hand information from people who have used both AdMob and iAds. I don’t really expect either will generate an avalanche of cash for even moderately popular free games. But I expect fill rates to improve dramatically as Apple builds their advertiser customer base.
It’s really about not being forced to choose one or the other. I think, for example, it would be just as bad to be forced to use iAds instead of AdMob…as many have said, the fill rate just isn’t anywhere near that of AdMob (yet). The solution that seems to work best is to use iAds when they are available, and AdMob when they’re not. That way, you are maximizing the amount of revenue possible. But as of right now, this is not an approach that can be implemented.
As I mentioned already, the more fundamental problem is being blocked by some unimplemented API feature, such as iAds. A solution to the problem would be to facilitate platform-specific extensions that the user or 3rd parties can build to extend the capabilities of Corona. Then nothing is an issue and I can build whatever I want with no worries that I’ll hit a brick wall 90% towards completing my project. And Carlos’ lawyers can take the day off. 
Carlos and his team have done an amazing job with Corona thus far. I’m simply trying to encourage them to make it more extensible so that we’re not so dependent on them for feature requests. They are, after all, a fairly small team…I would much rather see them support a base set of functionality on as many platforms as they can manage, and then allow 3rd parties to develop awesome platform-specific extensions. Heck, Ansca could even sell them. Win-Win!
-John
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