in-nest-sequence: sequence generator in Racket
For cases where the the user follows the syntax and the function returns and receives the correct number of values, this works fine.

It is a good principle to catch errors as early as possible.

Consider this example:

(in-iterate add1)

Here the user supplies a function add1 that has arity 1, but supplies no arguments. This will eventually lead to an "result arity mismatch;" error, when add1. This error can be caught earlier in using procedure-arity to check that enough init values are supplied. The error message presented to the user can be "expected 1 initial value, but received 0".

In the *in-iterate consider: [(x ...) (_ func init ...)] .
Here the number of bound identifiers (the xs)  must be the same as the number of init expressions. If they are not, a raise-syntax-error with stx as the source of the error can be used.

An example that should be a syntax-error (and not a runtime error):

(define (add1/2 x y) (values (+ x 1) (+ y 2)))
(for/list ([n     10]
           [(x y) (in-iterate add1/2 0)])
  (list x y))


The name of the construct is a bit off. In in-list and in-sequence we have the pattern in-noun, so that suggest in-iteration might be better. However iteration is a bit vague. Maybe one in-nested-sequence or in-nest-sequence based on the name used in Mathematica? http://reference.wolfram.com/language/ref/NestList.html