[iPhone coverage added to make image as viewer-safe as possible - Ed]
As should be no surprise, given how the porn industry is typically among the first to adapt to new technologies, Macenstein reports that the first app to feature nudity has made it into the iTunes App Store.
The app is rated 17+ for frequent/intense sexual content or nudity, and frequent/intense mature/suggestive theme. This means the new Settings > General > Restrictions > feature for parental controls in iPhone 3.0 can be used to globally allow or block the app (or any app based on several age-based levels). MacRumors explains the results:
If an App falls outside of the allowed rating they will simply disappear off your home screen. Once you turn the restrictions off again, the affected apps reappear.
This should mean we don't see any more app rejections for search-based language or content, but it also leads us to wonder how long it will be before we see major adult entertainment companies come knocking on the App Store door...