Today, Apple has denied a development license to one iPhone developer to release their application via the iPhone App Store. The application was called iBoobs, and it essentially attempts to simulate Dead or Alive-style breast physics on the iPhone.

Apple has not yet released a statement on their decision to deny this request, but it appears obvious that for the time being, they are intent at keeping this type of content off the iPhone.

The application came in the form of a simple simulation. You’re shown a pair of breasts, and you bounce them using the iPhone’s motion detector. The developers also say they had plans to integrate touch screen features as well.

This issue becomes slightly more interesting however, when taking into account Apple’s gaming aspirations. Apple has publicly stated that they very much want the iPhone to become a contender in the handheld gaming market. But how does the decision to deny breast physics on the iPhone affect that?

If Tecmo approached Apple with a proposal to develop a new or ported Dead or Alive game to the iPhone, would Apple turn them down on the basis of jiggle-physics?

Since the introduction of physics-based gameplay into the gaming world, there have been aspirations to include 100% realistic female anatomy. Once the physics phenomenon makes its way to the handheld sector of gaming, will Apple still refuse?

It will be interesting to see how Apple handles this situation in the future. This app leans far more towards pornography than an actual game, and that must have played a part in Apple’s decision.

The developer even said they were planning to implement adjustable physics settings and breast size.