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Will there be provisions for apps to become "sponsored" by SO wherein the limits are removed? Say somebody writes the de-facto iPhone app and it gets 500,000 users, the 10K cap will be hit pretty quickly.

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According to Getting Started with the API, the 10K cap is per-IP address. Thus, the API limit for an iPhone app would be per user, not for the whole app.

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    This is correct. Commented May 20, 2010 at 17:58
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    This does not, however, work for a website, which may have only two or three IPs from which to make requests. Commented May 20, 2010 at 18:21
  • Yeah a service based app is a no go. :( Commented May 20, 2010 at 18:36
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    I opened a feature request for adding support for people to request per-key limit increase - stackapps.com/questions/61/api-key-limit-increase-support Commented May 20, 2010 at 21:09

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