Paul Kafasis on the Rogue Amoeba Blog:
Regardless, Apple is using the authority they provide themselves in the guidelines and program license agreement to remove apps they don’t like. Specifically, they cited a provision in the App Store Review Guidelines which allows them to reject apps “for any content or behavior [they] believe is over the line”. That’s certainly disappointing, and frustrating, but it’s the nature of the system Apple has created.
One word: Fucked.
You may be asking why Apple would want to prevent users from having this functionality. Only Apple can provide a full answer here. We do know that Airfoil Speakers Touch’s ability to receive audio directly from iTunes and iOS enabled some users to forgo purchasing expensive AirPlay hardware, hardware which Apple licenses. It seems Apple has chosen to use their gatekeeper powers to simply prevent competition.
Two words: Double fucked.
No matter how lovely the products are, no matter how much money can be made by app developers, stuff like this leaves a sour taste in the mouth. And sooner or later, if you keep on doing stuff like this, it comes back to bite you.