Apple never really announced the selection criteria for getting apps onto the App store. But something definitely take the cake. For example, a rejection simply because a developer dared to create an app that could compete with iTunes. Apple even went so far as to state that as the reason for their rejection, assists in the distribution of podcasts, it duplicates the functionality of the Podcast section of iTunes .

The app called as the Podcaster , helped to play podcasts and even better, it allows you to do so without syncing to your computer. Developers have now had it with wringing their hands in despair since Apple doesnt tell you if your app goes on or not, until after you put in months of hard work creating it. As a result a lot of developers are simply deciding to have nothing to do with the store anymore.
Its remniscent of Microsoft pushing their Internet Explorer browser in the early days, but we seriously thought that those days were behind us. There can only be two solutions to this scenario. Either someone drags Apple to court (unlikely and difficult to prove) ; or a competitor picks up from where Apple left off, creates a similar product and does all the right things for the developers. It shouldnt take long for the word to spread.
But until then here are a few things developers are hoping Apple can and should do.
1. Publish clear and unambiguous rules for what will be accepted and what will not. I dont even care if this is a long and detailed document, but it needs to be The Rulebook from which both sides play.
2. Defend those rules against external pressure from carriers (NetShare) or the media (Slasher).
3. Design a process by which developers can be given official pre-approval of their idea. Possibly a general nod, possibly conditional on certain criteria. If developers are going to go and borrow money to hire talent or build out services, they need more confidence than all us when youre done?
4. Loudly and conspicuously hire an App Store Evangelist. Preferably someone with an already high profile who does not already work for Apple. In fact, it might even be best if this person was not paid by Apple but an independent developer to whom Apple would give deep access to work with the App Store team. This is an investor trust issue.
5. When controversies arise, let the Evangelist get into the conversation and lay out a clear rationale for Apples actions.
6. Send the App Store Evangelist to every corner of the earth where iPhone developers gather. Unshackle them from the usual Apple constraints on public speaking. Get them on podcasts. For better or for worse, Apple has to start talking to the iPhone developer community.