The line in the iPhone SDK is the same as the Google Maps API terms of service:
1.4 Appropriate Conduct and Prohibited Uses. The Service may be used only for services that are generally accessible to consumers without charge.
In addition, except where you have been specifically licensed by Google to do so, You may not use the Service with any products, systems, or applications installed or otherwise connected to or in communication with vehicles for or in connection with: (a) real time route guidance (including without limitation, turn-by-turn route guidance and other routing that is enabled through the use of a sensor); ( any systems or functions for automatic or autonomous control of vehicle behavior; or © dispatch, fleet management or similar applications.
http://code.google.com/apis/maps/terms.html