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As iPhone application downloads hit the one billionth mark in the first nine months, more controversy is emerging with the application approval processes.

CNBC features several successful applications, calling them a great business deal for entrepreneurs and Apple...

“25,000 apps now available from tens of thousands of software developers created a marketplace that this industry really hasn’t seen before...”
“One of the top sellers is Ga-Wang’s musical instrument software, turning the iPhone into a wind instrument. More than 800,000 downloads so far at 99 cents each, he’s a bonafide technology phenomenon.” (CNBC)

Apple recently rejected Nine Inch Nail front-man Trent Reznor’s iPhone app, saying it provided potentially offensive content, even though his music is sold on iTunes.

Billboard Biz takes a look at the discrepancy...

“The main takeaway is that artists, labels and managers must be aware of the huge difference in what is and is not acceptable content at the iPhone app and music stores. Apple is clearly more lenient with music... Not all music content will be welcome in an app store.” (Billboard Biz)

Reznor’s app is not the first one to cause controversy for Apple. MyFox DC lists other iPhone applications that have been removed, including: Baby Shaker, Prohibition 2: The Dope Wars, and Slasher.

Some apps like the popular PocketGod face a detailed approval process, the app was once rejected – because an icon looked like the iPhone....

GizHQ.com says Apple needs to back off the approval process.

“Apple needs to cut the cord and let developers build what they want.  If they want to protect the masses, they can slap a parental advisory on an app.  Developers and users alike are growing tired of the app approval circus...” (GizHQ.com)

Other blogs report that the iPhone 3.0 will feature parental controls, which will take Apple out of the filtering process.