Yes, that is the code which gets displayed, if a mobile browser is detected. The reason is, that mobile browsers can't potentially display the default vbulletin code, therefore nothing gets displayed.
The above code you posted is a replacement-code, which works with most mobile browsers (iphone for example). However, the ipad seems still to have trouble displaying the fallback code. So if you put the code snipped I posted a few posts above into the option field, you can ensure, that every mobile browser only displays the link instead of an embed, which he potentially can't display.
This is just a temporary solution until I figured out why the ipad can't display the fallback code and I might find a better replacement