I am compelled to write this story simply to say it does not matter: Reports came out a few days ago that all the iPhone OS applications that sniff out Wi-Fi, scanning the vicinity for signals and other information, have been removed from the App Store, the only authorized place from which iPhone and iPod touch owners can download apps, free or fee.
It doesn't matter, despite all the yelling about it. The sniffers were dropped because they use a private framework, hooks in the operating system that are not documented nor allowed for third-party developers to use. Apple scans and checks for these kinds of uses, and rejects programs that employ them. The sniffers got a pass for some reason, but someone at Apple woke up and kicked them out. It's a shame for the developers who put time into them, but using private frameworks is a completely well-known risk.
This dumping of sniffing apps is entirely distinct from Apple's arbitrary and capricious acts related to other programs and categories of programs, in which developers acting in good faith and according to guidelines find themselves on the wrong side of a shifting line. That happened to "sexy" programs, all of which not made by major firms like Playboy and Sports Illustrated, were dropped without warning.
It's been suggested that Apple should have an open and closed mode on the iPhone, letting people choose to run apps that haven't been reviewed and filtered by the company, but making no guarantees about those; in the closed mode, only Apple-approved apps would run. Apple seems to have no motivation to make that change, however, with its closed system working just fine for it, if not developers.