There were some very discouraging signs from Apple out of the WWDC with regard to iPhone developers and the App Store review process, but it sounds like the pile of online criticism is having some effect on them:
I also learned, through various statements and implications, that the App Review team tries to actively avoid major blog publicity about bad rejections, and it’s something they take very seriously. This means, fortunately for us as iPhone-dev bloggers, that we matter and we should continue to bitch incessantly whenever anything is rejected for an invalid or ridiculous reason..