Reading this thread, I felt that I should register on these forums, because I have something to say.
A lot of people are really mad that Apple rejected this app. A lot of you are saying that you've "lost faith" in Apple as an innovator. And almost everybody seems to think that Apple is now stifling innovation.
The fact is, Apple has always, always, always provided roadblocks for customizing your products since longer than I have been alive. All of you know that Apple likes to control what kind of apps can get on the phone. And, like it or not, their strategy works for the average user. Having this kind of centralized database of approved programs makes people unafraid of viruses, trojans, or malware. And when the user wins, the developer wins too, because people will download more apps if they know its safe to do.
A necessary evil of this system is that certain functionality will necessarily be off-limits to developers. This is the price Apple is willing to pay. Everybody on this forum knew that Apple would reject this app before they did. Deal with it.
As for all you self-proclaimed "power users" who are weeping and predicting Apple's demise, realize this: nobody's stopping you from jailbreaking your phone, and nobody's stopping you from developing your own programs to run with Cydia. If you're too afraid to jailbreak, then perhaps you're not the power user you believe yourself to be. These days, jailbreaking is safe and easy. If you're willing to pop open the hood, you can modify the iPhone OS to precisely your needs. Take Apple's own advice, and think different--don't accept limitations, do something about them.
So, if you don't like what Apple's doing here, stop moaning and start jailbreaking.