The iPhone and iPod Touch are very interesting platforms for enabling technology. Touch, accelerometers, portability, radio, coolness; they've got it all.
But the rules of program distribution are so ridiculous that I can't imagine playing by them. I want to give my apps away. And I want to do it without some faceless technician's approval.
After you've done the work to develop your App they can reject it without giving any reason.
This recent post from Riverturn illustrates the problem though I've heard of many more cases like this.