It seems the iPhone, with its OpenGL and CoreGraphics/CoreAnimation is just begging for some body distortion. We've seen it before (and seen it get rejected before), and it just keeps getting more fully featured. Says the developer, Smells Like Donkey:

everyone assumes that iJiggles is strictly a boob app. It is of course the first thing everyone does with it and it does it well, but it's designed so you can have fun with it on any picture.

Indeed, version 1.1 will include: Smoother and Faster Animations, new "Inflate" feature to further enhance parts of your photos, multitouch interactivity, saving and loading.

Gallery after the break.

(And BTW- TiPb is still waiting for the ladies to get a little pay back with these apps. Maybe in our Forums?)