Just read this article on TechCrunch.  Porn has been allowed on iPhones in the realm of Internet browsing since its inception, but it is now being allowed on iPhone Apps. We are real close to the release of X3watch on the Iphone but no way around porn apps so far.  Here is what the article says:

 

Just as we were speculating a couple nights ago,
Apple has apparently decided that with the new parental controls now
built into the iPhone 3.0 SDK, nudity is now okay in iPhone apps. The
first such app, Hottest Girls, has actually been around for a little
while. But an update today “upgraded” the pictures from girls in
bikinis and lingerie, to topless and completely naked girls.

“We uploaded nude topless pics today. This is the first app to have nudity,” Hottest Girls’ developer Allen Leung tells Macenstein. Quite an accomplishment.

While some will undoubtedly see this as a bad thing, I think this is
actually a good thing. First of all, allowing mature content like this
should free up the App Store screeners to be able to focused on finding
apps that are actually malicious or out of line, rather than being prude-police.

Second, as we all know, porn is a big industry and as long as the
kiddies can’t see it, there’s nothing wrong with adults being allowed
to get it on their iPhones. It should make developers a lot of money.
And it should make Apple, with its 30% cut, a lot of money. Still, I’d
be surprised if we see hardcore pornography in the App Store anytime
soon, but who knows.

Lastly, this is the App Store opening up a bit more once again. It
did a bit last year when it started letting in cartoon violence NC-17
games, and this is the next step. A more open store, is a better store.
Yes, even if it means a flood of crappy soft porn apps. Options are
good, download what you want. Though I still believe there needs to be
a better sorting and highlighting mechanism from Apple
for apps.

It’s possible that this is another case of Apple letting an app slip
through that shouldn’t have, but given that the developer is playing up
the nudity on the app page, I doubt it. And it looks like Apple has a
new rating sub-heading: Rated 17+ for “Frequent/Intense Sexual Content
or Nudity.”