Yeah, that's why I don't like it as it starts a precedent, of restricting things based on content.
When they've not done that with music or movies sold in the iTunes store etc. (well no Porn, but don't ban R rated movies etc.).
I don't like the App rejection stuff period, but could do with it as I just have basic app needs--network video players, newspapers, weather, pdf readers, comic readers etc.
So I can deal with some apps getting rejected as they're apps I wouldn't use anyway as my needs are already covered by what's out--and I can't think of any type of app I'd want that is likely to get rejected. It sucks for developers and I don't like it, but in the end that doesn't affect me much.
But if they want to start limiting things based on content....that's setting a dangerous precedent.