Only new submissions seem to be banned because Apple says there are too many. Clearly there are loads if you search the App Store. Gruber quotes and I re-quote:

> Certain kinds of apps, such as dating, flashlight, sound effects, wallpaper, simple timers, and fortune telling, are well established on the App Store and we will not accept new submissions unless they offer a meaningfully different or improved experience. We may remove these apps from the App Store going forward if they are not updated, improved, or do not attract customers. Other kinds of apps, such as drinking games, Kama Sutra, fart, and burp apps, are mediocre, low-quality, or low-effort and do not add value to the App Store.