This is the first time you could install apps on your device without paying for a membership. Previously you could design and test through a simulator for free, now he can build and actually use his app without paying extra as he isn't distributing.
I think you two are talking about different things. You could always distribute to OSX devices. However, now is the first time ever when you can run your app on an iOS device without a membership certificate from Apple. This is very good news.
