My 4¢
I've been browsing this board for about 2-3 years now, and just registered to post in this thread, because it's the first one that really got to me. It's unfortunate that it's mostly negative, but here goes
My impression is that Apple is headed in a bad direction with this. I understand that NDAs for them are a necessity
they're a company who's main source of income comes from innovation and being first to market with well thought out and integrated products. Not perfect
but usually the best that's available at the time they're introduced. I don't consider myself a fanboy, but I've definitely been an Apple fan for about 20 years, and have even "converted" a few people.

But this news troubles me, and cools down my admiration a fair bit. Stifling criticism has never been a good move in the long run, for anyone in a position of power. This will come back to bite them in the rear-end, eventually. Yes, extending the NDA to refusal letters does protect Apple from unfair criticism
but it also protects them from legitimate criticism
bad idea.
After reading all the comments, I see 4 points that urgently need to be addressed by Apple:
1) The approval rules for the iPhone App Store need to be clearly defined. I've been dealing with Canadian immigration for the past 4 years. I know all about hidden agendas and "secret regulations". So I'm not surprised that Apple is keeping their rules "vague". The motivation behind it is probably the same
they don't want the public to know what their true agenda is, and especially, what their plans for the future are. The downside is, it's also a very efficient way to breed mistrust and resentment, which I don't think is in Apple's best interest.
2) A consistent pre-approval process needs to be put in place. Expecting developers to finish their application before knowing whether or not they will be allowed to sell it is rediculous. I develop for a niche vertical market. I've heard about how relatively easy it is to create applications for the iPhone, which piqued my interest. But after researching all the restrictions imposed by Apple on iPhone developers, and now this, I'll hold off until Apple becomes more developer-friendly. It's too bad, because my wife and I have a good idea for an original and (we believe) useful iPhone application. But spending a hundred or more hours working on something we may be arbitrarily banned from selling
not interested. And I'm sure I'm not the only one with this sentiment. Which is unfortunate
it hurts everyone involved: Apple, developers and consumers.
3) Having an official iPhone App Store, with restrictions on what is sold there, is a great idea
in theory. It would be be a great idea in practice too if it were managed properly. As with the regular online Apple Store, consumers assume that the products which are sold through Apple are endorsed by the company, and meet minimal quality requirements. I think this is a reasonable assumption, but obviously, it's not the case. The iPhone App Store's inventory seems to be mostly junk. A cleanup is in order. But the more important point is; developers who have produced an application that doesn't meet Apple's "standards" should be allowed to market their products independantly. At the moment, this isn't possible, except in a very limited way. This would encourage developers to come to the iPhone platform, instead of pushing them away
which can only benefit Apple and the consumer.
4) Apple needs to open up the iPhone platform itself. Like it did with the Mac platform, when the first iMac was introduced. Restricting when, where and how potential customers can use their iPhone is not a good way to elicit sales. Sure, the iPhone is a great product, but it's also a very closed product. And Apple, of all companies, should know where that leads
small market share. My wife and I have been interested in the iPhone since the 1G, but what's holding us back from buying a pair is being forced into using a specific service provider (which would also make traveling with them problematic), and restrictions on what software we can install on them. If Apple doesn't want to support the use of certain providers or applications
fine! We can understand that, and will accept those as "use at your own risk". But to purposefully block them
that makes no sense, and just lowers the iPhone's appeal. So for now, we'll stick to our current cellphones and my laptop, until Apple wises up. It's for similar reasons that I will not buy music though the iTunes Store. I refuse to "buy" music with lossy compression and locked with DRM. Because then, I'm actually only renting it with restrictions on where and how I can listen to it, and with lower quality to boot. I know the DRM is not Apple's fault
it's imposed by the record companies. But it's based on the same type of short-sighted reasoning that Apple is using with the iPhone. So for now, I'll continue to buy CDs (which is unfortunate because they're a waste of resources), and continue to rip to AAC myself (and probably soon to Apple Lossless due to now cheap 1+TB HDs

) If Apple opened up the iPhone, it could evolve into the defacto mobile computing platform of the 21st century
like Windows has become de defacto standard OS for PCs. But with their current attitude, I fear it might only become one of the numerous players in the pond
and may eventually become a minor player, like the Mac. Which would be too bad, because the Mac was the technologically superior product. Historical proof that only that is not enough.
I understand that some people who have posted think Apple is doing the right thing with their NDA and iPhone App Store restrictions. I'm not saying they're doing the wrong thing. My position is; they're leaning more towards wrong than right. So I think the best way to get Apple to listen to it's customers on this, is to vote with our dollars. My wife and I will not buy iPhones as long as these silly restrictions are in place. Also, our main computer is an ageing PowerMac G3 (10 years old). I was thinking of putting it into semi-retirement this winter as a file and backup server, to be replaced by a Mac Pro. But I'll put a hold on that too, for now. With a new processor and some bigger HDs, I can probably get a few more years out of the G3
or at least until Apple wises up.
