Never mind that you can get to this sort of thing on Safari… apparently political cartoons aren’t allowed on the iPhone.
Ridiculing public figures being defamatory? What ever happened to parody? Also, being public figures, IIRC, the level for whether the speech is defamatory is higher.
Now, one thing I’ll say… this would be a non-issue, of Apple deciding they don’t want to distribute it, if Apple allowed external software. But, Apple has control over what runs on the iPhone completely.
Yes, they are reversing their decision on this app, but only because of the public backlash. This is actually a good sign – public backlash against their actions, such as this series of blog entries, makes them respond. But, they’re obviously willing to do something if they think they can get away with it.