In a note on their web site, NiceMac LLC says they were told the 'application could not be approved at this time.' Starplayr is available on other platforms, including the Mac, Windows computers and Windows Mobile phones.
The release of the player was thought to be imminent a few weeks ago, but Apple gets the final word. It may be that Sirius/XM has problems with a third party player, or AT&T may have bandwidth issues. The app was delivered to Apple for review January 31st.
The Starplayr team remains optimistic, and says they will do whatever they have to do to get the app to the iPhone. It's all another headache for Sirius/XM fans who are also worrying whether the two merged satellite companies will survive long enough to make all the effort by NiceMac worthwhile.
Thanks to everyone who sent this in.