cubicle17:

Bad press stemming from this unconscionable decision is flying fast and furious, with two of the best responses coming from the usual places…

John Gruber’s “The App Store’s Exclusionary Policies”:

If you only find out at the end of the development process that your app has been rejected — not for a technical problem that you can address but because Apple deems the entire concept to be out of bounds — then who is going to put serious time and talent into an iPhone app?

And Paul Kafisis’ “A Bridge Too Far”:

Here, however, Apple has gone too far. Rejecting an application because it might compete with Apple is simply indefensible. There’s so much wrong with it that I’m not even sure where to start.

I’d be shocked if Apple didn’t reverse their decision with head-spinning quickness, but it’ll be interesting to see what plays out regardless.