iSlam Muhammad apparently depicted images of the prophet Muhammad (forbidden by Islam) and outlined disturbing passages from the Qur'an. It's surprisingly similar to BibleThumper, a Christian-bashing app that remains in the App Store.
This act of Apple censorship coincides with International Draw Muhammad Day, an Internet event designed to demonstrate how radical Islamic factions are causing traditional news outlets to self-censor themselves in fear of violent retaliation. This event has resulted in the country of Pakistan banning Facebook and YouTube, both of which have a number of pages that are touting the event.
What's disappointing is that this points out Apple's lack of consistency in approval of apps, as well as their inability to provide recourse to developers who have had apps rejected for seemingly weak reasons. Now, let the comments begin! Be civil.