There's nothing offensive about Holopic. It's a rather ingenious app that (according to the developer) uses just a couple of pictures to create a sort of lenticular lens pseudo-3D effect. That is, when you tilt the image you can see other angles in the image, like 3D, but it isn't true 3D. Unfortunately the developer spent a bunch of money getting attractive models into bikinis and then into the app right before Apple put the kibosh on nearly every app with so much as a bare ankle exposed (let alone cleavage). The fact that the app was rejected doesn't really surprise me, given Apple's new stance, but you could tell months of planning had been thrown off track by the decision. The developer was less than pleased about the situation.
Apologies for the fuzzy video, the Kodak Zi8 has no macro capability.