Today I finally got a reply from Apple about the status of Podcaster.
Apple Rep says: Since Podcaster assists in the distribution of podcasts, it duplicates the functionality of the Podcast section of iTunes.
That's right folks, it duplicates the functionality of the desktop version of iTunes.
Therefore, it was denied from sale in the app store. Although my app does allow you to listen to podcasts (like iTunes), it also allows you to download them directly to device and that is something Apple does not offer.
I find this a bit strange considering there are numerous apps that duplicate the functionality of other apps. For example, any calculator app is duplicating the functionality of Apples calculator app. Any app that tells you the weather is duplicating the Yahoo weather app. Any app that let's you listen to music is duplicating the iPod portion of the iPhone.
There are also several apps that simply allow you to listen to a podcast (Diggnation and Mobility Today just to name a few) that are not denied from the app store.
Apple had nothing in the terms prohibiting developers from duplicating features currently available on desktop application. I followed all the guidelines and made sure everything is in the correct place. Yet Apple denies me because I allow users to download podcasts just like iTunes.
I have emailed them back to find out what I must do in order for the app to be approved. I still have not received a reply. In the mean time, I have started to distribute the app via the Ad Hoc Method. If you would like to purchase a copy, please head over to http://www.nextdayoff.com and submit your UDID.
UPDATE: I used the word donation instead of pay because that's how I had it for the web app (podcaster.fm). The price of this application is $9.99.