It still runs fine, but you cannot obviously reinstall it
From the App Store, no, but from your iTunes backups you can. All you need is the .ipa backup file associated with a purchase under your Apple ID.
I've got this for several apps (iMAME and Gridlee, to name two) that Apple's done similar to.
Probably not the best links but ...
http://www.macworld.com/article/1134930/iphone_killswitch.ht...
http://www.tracyandmatt.co.uk/blogs/index.php/android-has-ap...