This is a good use case actually - Apple seeks to prevent "thought crimes" from arising around breach of third party terms of service etc, like this. Even if a user may be acting legally around copyright (overwhelming public interest of newsworthy material that's likely to be removed).
They also don't permit GPL-licensed software on their store, since the extra restrictions they impose appear incompatible with the GPL license.
An alternative store ecosystem would no doubt emerge very quickly, which allows GPL software, or perhaps any kind of free/open source software (like F-Droid in the Android ecosystem). That would arguably be a good thing for independent developers and the open source community.
