Apple said it will begin relaxing restrictions and providing specific guidelines for iPhone application developers, but that doesn't mean that the vetting or selection process will get any easier. Any app is eligible, provided it follows Apple's lengthy and sometimes subjective guidelines.
The guidelines say, among many other things, that hastily-assembled code, pornography, any video game identifying enemies as a specific race or ethnicity, or "mean-spirited applications" will be rejected.

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Apple - iPhone - AppStore - Smartphones - Handhelds

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