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Why hasn't someone just used the Google Maps API to mock up a quick app and submit it? Would Apple simply reject it?

I think because you need an account + API key and the account will be charged if there are more than some threshold request.

Could you make the app ask you to supply your own API key? It's very inconvenient but I doubt your individual usage will ever hit their limits.

It's relatively straight forward but the performance would probably suck as Javascript in UIWebView isn't great.