The UI needs some work. Running on an iPhone 3GS, it felt very laggy, many of my touches didn't register correctly.
Tap to rotate is an odd concept, and combined with the lagginess above, I was always moving when I wanted to rotate, or vice versa. Maybe two fingers to rotate?
Move the advertising. Having it right on top of the playing field caused me to accidentally click it when trying to move around a block, taking me completely out of the game.
A better visual distinction between blocks I'm allowed to move, and blocks I'm not allowed to move would be nice, I spent a few minutes of the first level trying to move the block that was already there.
Otherwise, I love the concept.