As much as I love you guys, I love your apps, and I desperately want Airfoil Speakers Touch to continue to be available, I think you're clearly dancing around the issue here, which is that you're a using cracked AirPlay encryption key. The cries of "we have no idea what Apple could possibly be upset about" don't sound nearly as innocent when you're circumventing an encryption system deliberately designed to prevent you from doing exactly this.

Personally, politically, and ethically, I don't believe in software patents and I think the copyright system is being deeply abused in horrible ways by big corporations, including Apple. So I'm in no way defending their policies or behavior. But I think you should have seen this one coming from miles away and it's no surprise whatsoever. You managed to sneak an app past the review process that is arguably in violation of Apple's intellectual property (as much as I hate the very notion), and now you got caught.

The best I think anyone can hope for is that this incident, like others in the past, embarrasses Apple into quietly changing their policies. But until that happens, I don't see AST being let back in.