For starters, "WebKit" is an overloaded term. There is "WebKit" the framework, which is a bridge between the actual gears (WebCore and JSCore) and applications. In other words, it is an API: an increasingly thin Obj-C layer on top of all the C++ that does the real work. Then there is the "WebKit Project", which is an umbrella term for all that stuff together (WebKit/WebCore/JSCore). Chrome for example neither uses WebKit proper if I recall correctly, nor the engine in JSCore (opting for v8 instead), and yet it is still considered a "WebKit browser". That's because what makes you "behave" like WebKit is WebCore, which actually handles DOM, rendering, CSS, etc etc. So saying that Apple releases WebKit for iOS is perfectly acceptable terminology, even if you are wanting to be pedantic about it. Now I don't know what you define as "juicy functionality", but I can assure you that WebCore is not just some helper library or something, WebCore more or less IS WebKit. It is certainly enough for you to be able to build your own custom browser for iOS. In fact, even if the iOS version was completely closed source, you could still take the desktop 100% open source WebKit and port it to the phone (just like Nokia and Google did for their phones).
So I guess I'm missing the relevancy of your point. If you just wanted to rant that Apple doesn't open source as much as it should, then I sympathize, but it really has nothing to do with the point I was making that due to the separate restrictive nature of the App Store policies, it doesn't matter if WebKit is or isn't open source because you aren't allowed to ship a custom browser engine anyways (at least not one that runs JavaScript).