UPDATE September 8, 2009 @ 16.43 CEST: Looks like the application still breached Apple's SDK. Manomio reports Apple pulled the emulator from the App Store because it was still possible to activate the Basic interpreter. The developer said they've now fixed the issue and submitted it again for approval by Apple.
Touch Arcade reports iPhone users can now buy a $4.99 Commodore 64 emulator for their iPhone:
Manomio's Commodore 64 emulator [$4.99] has finally been approved by Apple. We first reported on the project back in June, after Manomio had received their first rejection from Apple. The rejection was particularly disappointing considering the efforts that Manomio had made in making sure their emulator fully licensed and legal.