BOO. I was waiting for this app, and I didn't buy GV mobile (the unofficial app) because I was led to believe Google's official app was coming out. Now I really wish I had supported the independent developer before Apple did a complete 180 and pulled the app.
This is the most ridiculous development yet in the sea of BS that has been consistently emanating from Apple in recent months. I'm not going to threaten with "OMG I'm gonna Jailbreak now," because it's not realistic and from what I've read it's not worth it at this juncture and I don't think Apple cares all that much anyway because they're still selling the hardware. I shouldn't have to go to the trouble of Jailbreaking to use an app like this.
BTW if you hear someone say this app somehow costs carriers more bandwidth and that AT&T is just protecting its interests, know that they are just plain wrong. The app doesn't do VOIP calls over 3G or anything crazy like that. What this does do is give out features for free that dinosaur AT&T is still charging for, such as web-accessible voicemail, one phone number that rings all your phones and other really nice stuff that AT&T charges significant extra fees for, despite the fact that these features cost them little or nothing to provide.
I have a little under two more years left with my iPhone. This means Apple/AT&T have two years to figure out that it's really in their best interests to quit this anti-competitive device-crippling crap. If they don't, well... I'll just go somewhere else.
WebOS and Android will definitely have well-developed app stores and mature devices two years from now and I'll be absolutely thrilled to switch to a more open device with a cheaper plan on a better network. Hell, maybe even Nokia will get its ass into gear by then (very doubtful, but hey, a man can dream).
I really like my iPhone. It works great, I love all the apps, and the browser is amazing. But it's not hard to see the path we're going down when Google can't get an app like this approved.