I think the idea is absurd, and they better change it. This will not work for all games, and to "recommend" it is okay, but to enforce it is plain ridiculous. I hope Apple hears this and changes this requirement before the launch of the iPad. If they knew anything about gaming, they wouldn't be enforcing this. It's one thing when the Nintendo DS came out with the dual screen, and they were giving developers any options to utilize the dual screen for a mini-map, or stats etc, but when you're forcing a developer to program a game to work in both portrait and landscape, you're shooting yourself in the foot.
I guess if they don't change it for the time being, the easiest thing to do is just scale the image down and run it with black bars in the other orientation. It would almost be screaming at users to turn it the other way to play it at full screen.