No, it's because (as far as I can tell) the Scratch iPhone app was acting as a Scratch interpreter which is explicitly not allowed on the App Store to begin with.
The authors of the iPhone app (http://www.mobilewikiserver.com/Scratch.html) made a nice post in the developer forums (https://devforums.apple.com/thread/46425) pleading their case for any you with access to the forum and an interest in digging deeper.