I am not an iPhone developer but I have been around and managed enough large organizations to see that Apple has discovered a flaw in their trademark control program and they don't quite know how to resolve the issue.

There are certainly many people inside Apple that understand their position is factually untenable but they are countered by others with the Apple " must not be crossed" mentality. It is a stand off inside Apple as the common "..still under review.." comments is stand bureaucratic speak for when the system is caught in an infinite "do-loop" waiting for an adult to hit the ESC key.

In any case this makes Apple look a bit foolish if not childish by many developers and casual company observers.