Gruber and Kottke both have interesting comments on the subject. Kottke:
What I can't understand is: why should Apple pull I Am Rich from the App Store? They have to approve each app but presumably that's to guard against apps which crash iPhones, misrepresent their function, go against Apple's terms of service, or introduce malicious code to the iPhone.
At this point we don't know if it was the author or Apple that pulled the application.
Why would the author pull it? One thought is from all the bad press it was getting. The App Store is still new enough that new applications are being "reviewed" by bloggers that normally wouldn't touch the subject. Armin indicated in his description of I Am Rich that he would (or did) have other applications available for sale. He may have feared his other applications wouldn't sell as well with I Am Rich tainting his reputation.
One could also argue it was because of Apple's refund policy on purchases from the App Store portion of the iTunes Store. Gruber states:
If everyone who “buys” this app is then demanding a refund or credit card chargeback, you can see why Apple, or perhaps its author, Armin Heinrich, would take the app down.
I have not read through the license agreement that application publishers agree to when submitting their application to the store. One might assume that if a refund is given by Apple on an application purchase that Apple keeps their 30% share and the developer must refund the full amount to the customer. If this is the case there is no wonder Armin would want the application removed. One refund and he would be out $300. But, at this point, we don't know if that is how the process works. [UPDATE: Gruber confirms "that with the App Store, developers pay the refund fee."]
This does bring up another interesting question (which may be answered in the iTunes Store EULA): Are all sales final from the App Store? If not, and a refund is issued, would Apple remove the application from your phone (you got your money back, they get their app back)? We already know Apple has method to remove "malicious App Store applications. Could something similar be used for refunds?
While some say it is the price we pay for having the App Store available on the iPhone, I don't like the thought of Apple being able to remove items I have paid for at any time.
Finally, here is a screenshot of a review from a supposed "buyer" of the app:
Really? I call fake. Either that or stupid. It is not Apple's place to decide if an application is worthy of being on the store. They should vet apps for malicious code and content (porn, etc.) and then let customers decide if they are worth paying for.
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