much better already! Interesting question by the way.
Full disclosure of terms is a must I think, and a very rigorous process should be in place to handle these situations.
I firmly believe that even though the app store is clearly apples creation with great power comes great responsibility.
And when companies do not live up to their responsibilities (I think Apple has proven beyond reasonable doubt that they act in an arbitrary way) then they ought to be forced to do so.
People build their businesses on top of the Iphone app store ecosystem and they should have a reasonable expectation that their investment is not subject to some arbitrary action of Apple.
If Apple does not want that kind of oversight they have a simple solution available to them: Open up the app store for everybody and drop the review process other than to look for stuff that I would loosely class as 'malware'.
If your application is merely stupid, trivial or has been done a million times already that should not disqualify you. Even 'disgusting' stuff should be possible, who is apple to define what is disgusting and what is not.
As long as applications stay within the law there should be room for them in the App store, the only thing Apple could do to protect its brand in this respect is to categorize the applications or to cut the app store loose from the mother ship.
They're in a tight spot on this one, damned if they do and damned if they don't. The 'apple knows best' strategy is backfiring big time.
