Random, weird rejections with no (or only a vague) explanation are prototypical Steve Jobs Apple. This policy is Steve Jobs Apple incarnate. This is one of the defining characteristics of an Apple under Steve Jobs.
One has to be astonishingly unperceptive to not see this.
This exact behavior happened all the time when Steve Jobs ran Apple. Remember Google Voice, or the countless other apps that Apple banned from the walled garden for whatever reason?
If anything, this is evidence that Apple hasn't changed.
Anything Apples does wrong people are now saying "This wouldn't happen under Jobs". How quickly people forget the iPhone 4's antenna problem and Steve Job's response of "You're holding it wrong."
I doubt Steve Jobs would have allowed the situation to be handled so badly.
Then again I may be wrong. The concept of an app store is great for having all the apps in one place but it's prone to abuse when run by a company.
There shouldn't be any reason other quality, viruses or spyware to reject an app.
Refusing an app because its in competition with your product is anti-competitive and should be illegal.