Apple Rejects Dictionary App for Containing Swear Words
mashable.com
mashable.com
I think that anyone developing for the app store is fully (painfully?) aware of the fact that the approval process is somewhat of a blackbox, with an element of randomness thrown in for good measure.
Apple appears to want to ensure that the App Store doesn't get overrun with porn, and are clearly deluged with tons of submissions (ref: the story the other day about the wonk that was submitting something like 15 new apps every day).
Although Apple has a rightfully earned reputation as a "it's our way or the highway" type of company to work with, I think most reasonable people would assume that they also do not want to discourage developers from creating quality content for the iPhone/iPod platform.
I would prefer to see a more detailed account of an app submission and reject loop (with feedback, changes, timelines, etc.) than another story about some app getting rejected for what seems like a baseless reason.