And so it continues ....
Well, yes! Apple is trying to eliminate anything that might interfere with future plans of theirs for product improvements. Remember the big "fiasco" when OS X introduced dashboard widgets, and there was already a shareware package doing just about the same thing?
I recall them pretty much railroading right over competing apps when they decided they wanted to create iTunes, too.
Declaring an app "lacking in functionality" is a nice way of rejecting something in a relatively "political correct" manner, because it's subject to so much interpretation. But let's face it. Apple is rejecting stuff MOSTLY because it makes a product of theirs look worse or deficient in some respect. Other times, it's simply because they're already tossing around the idea of implementing something the person was trying to do.
In the end, you can call it "stupid" all you want, but Apple ultimately DOES have the right to decide not to help you sell whatever program you decided to make and submit to them. Just like any "mom and pop" 3rd. party Apple dealer can tell you, Apple looks out for their OWN interests first. If you want to succeed selling on their store, it'd be wise not to write apps that remind people the stuff built into the iPhone "sucks at doing this or that, so you should try this alternative". Conversely, Apple really likes things that are "innovative and original". Does your app give the iPhone a whole new capability it didn't have before, allowing Apple to add yet another "selling point" for the phone to potential customers (EG. ability to remote control a desktop with VNC protocol)? That's the type of app they're going to embrace, assuming it doesn't cross any lines AT&T has drawn in the proverbial sand.....
This is SO stupid. IMO, Apple has no good reason to reject these apps. Apple is just trying to eliminate the competition with their own apps. I would have loved Podcaster, and I can see how this app would be nice for others as well. If Apple wants to keep the app store from becoming overloaded with apps, they should at least remove the many useless apps instead of these which would actually be useful.