In late 2011, OnLive announced that it would be bringing its over-the-air console gaming platform to iOS. It promised that users, wielding its dedicated controller, would have access to a library of tens of thousands of popular games on their iOS devices.

But as cool as it sounded, the magic soon wore off as the app’s ETA went from “imminent” to “your guess is as good as ours.” It’s now been 6 months since the OnLive team submitted its iOS client to the App Store. And it’s still awaiting Apple’s approval…

TouchArcade recently spoke to OnLive at the ongoing E3 gaming conference. And here’s what it had to say:

“It’s not much of a surprise that Apple might have issues with the OnLive app, as it’s offering a complete platform that Apple doesn’t have control over, promotes a gamepad, and provides content purchased outside of the App store ecosystem. So, here’s to keeping our fingers crossed to OnLive and Apple coming to some sort of middle ground to get the app out.”

It’s pretty much common knowledge these days that if Apple doesn’t understand or like what your app is doing, it won’t see the inside of the App Store. We’ve seen evidence of this as recent as the whole Airfoil Speakers Touch debacle, where Apple pulled an app that wasn’t technically breaking any of its guidelines.

But you have to admit that this would be a difficult decision. Would you approve an application that would surely negatively impact your App Store revenue? Because not only would OnLive sell its service outside of the App Store (and Apple’s 30% cut), but it would also likely cause a noticeable drop in App Store (game) downloads.

That’s a tough call. And you can bet that all eyes in the industry are on Apple right now awaiting its decision. If it shoots down the gaming client, then everyone will likely say “figures,” and move on. But if it approves it, it could unlock a whole new world of possibilities for developers.

What do you think Apple should do?

[MacRumors]