I think the bigger story is (if true) why it was rejected. Apps being rejected or put on hold no longer surprises me, but if the tweet is accurate, that is a pretty dumb reason to reject the app
I think Apple is so overwhelmed with App store submissions that they leave accept/reject decisions to under-qualified individuals reading from a list of dos and dont's without any context or understanding.
Whomever rejected Tweetie obviously didn't understand that they were looking at user-generated content.