The first thing I thought when I saw that the C64 emulator we posted about the other day still had the BASIC interpreter hidden in it was, "Well that won't last." And unfortunately for fans of software emulation on the iPhone, I was right: the software got pulled from the App Store but quick. You can't really blame Apple here -- they've made it pretty clear that they don't actually want people running unlicensed, emulated code on the iPhone, so it's not hard to see why, when it was discovered you could still activate the interpreter, they cleared it out of the store.
The good news is that the emulator has been updated to delete the interpreter completely, and the owners of the software have resubmitted it yet again to the App Store. But as much as I enjoy seeing emulators on the iPhone (I've made it very clear I'd love to see an official NES arcade app), I can't say I'd blame Apple for just passing on this one outright. They've had to go through this app at least twice now, and especially since app approval is already taking so long, that's pretty much a waste of time.
Mistakes like leaving the BASIC in the app (Edit: My mistake -- they intentionally left it in and hidden, with the expectation that Apple would later allow it. Doesn't seem very likely.) are making it much easier at this point for Apple to just say "no emulators, period," and move on. Hopefully this app will get re-approved, and that'll be the end of it.