Ah, the circus that is the App Store approval process. While it appears that Google's new voice-enabled Mobile App slipped through the approval process despite some SDK no-nos, so did a far-too an innocent sounding app, Wallpaper Universe.
Wallpaper Universe (since removed) by FunMobility gave you the ability to add wallpaper to your iPhone. Not just any wallpaper, though. Ahem (see above left).
The app has disappeared, and I wouldn't think of putting it on my phone (look what happened to Tina Sherman) anyway, so there's no way of knowing just how, em, adult-ish the wallpaper is, aside from this screenshot.
But really, the screenshot alone should have precluded it from making it into the App Store, based on Apple's policy of excluding such adult apps.
Someone was definitely asleep during the approval.
However, let's be honest: there are many apps that pass through the store. While you would think the screenshot alone would have earned this app a rejection, perhaps the employee checking these simply looked at the title of "Wallpaper Universe," and just assumed it was a simple wallpaper app.
At any rate, while some are bound to jump on this and criticize Apple, I think it's funny, and just another example that we (including Apple employees) are only human.