This week some controversy aroused about Apple refusing a Nine Inch Nail App update because of the language used. This is not the first time Apple refused Apps because of inappropriate language or content.
Now it looks like the new iPhone OS 3.0 will change that as it features enhanced parental controls. Apple Insider reports that Apple made some comments to declined App submitters that they should try again once iPhone OS 3.0 is out.

Update:
First Adult iPhone App available.

The iPhone 3.0 parental controls have not been fully disclosed yet by Apple.
I am not sure how far Apple will go in terms of approving Adult content. The adult film industry sure would be ready to deliver steamy iPhone Apps right away.
More New iPhone News and Rumors.