Unfortunately, both the awk script and the org-export-icalendar seem to have quite a hard time with repeating entries. ical2org does not honor RRULE at all, the export has some very basic and very fragile support, but anything like <%%(org-diary-class 16 02 2011 18 05 2011 3)> or SCHEDULED: <2011-02-20 Sun +1w -2d> already fails it.
I think this is an important topic, especially wrt mobile devices. Better interoperability with other calendering systems would greatly benefit the org user experience. -- Philipp Haselwarter