Yesterday we told you that the first iPhone app with real nudity had been both published and then banned. Many people were covering the launch as it appeared to be a reversal of Apple's Morality Police tactics.

However as people checked the developer's website and saw a message about server usage, there were more than a few retractions.

We did not think that was the case. After all why would Apple change now.

Well it turns out we were correct after all as an Official Apple statement released today shows.

Good thing we bought ours bfore the ban...

Read more here

That left a lot of people backpedaling after yelling at Apple for pulling the app. As it turns out Apple did pull the app--the company confirmed the move in a statement provided to CNET on Friday.

"Apple will not distribute applications that contain inappropriate content," Apple's statement reads. "The developer of this application added inappropriate content directly from their server after the application had been approved and distributed, and after the developer had subsequently been asked to remove some offensive content. This was a direct violation of the terms of the iPhone Developer Program. The application is no longer available on the App Store."

Many observers thought that the App Store flip-flops might end when iPhone OS 3.0 was released because Apple could utilize the new operating system's built-in parental controls.