It’s worth pointing out that our terms of service make it clear that users will find a broad range of content on Yahoo!, and the responsibility for what children may see rests with their guardian. Term Number 3 states: Please remember that the Services are designed to appeal to a broad audience. Accordingly, as the legal guardian, it is your responsibility to determine whether any of the Services and/or Content are appropriate for your child.
This issue is of particular interest to me because I recently had my Flickr coverflow iPhone app, iFOTOFLO, initially rejected because of 'inappropriate content," but when I replied to the rejection...
My application uses the Flickr API, and since your feedback/rejection, I have set the Flickr search parameters to reflect the safest search possible (safe_search=1). Please re-review my application. Note that if this filter is not sufficient for Apple, then I would argue that all Flickr-related search apps should be removed from the App Store. I would also like to point out that my previous Flickr-related app, iFOTOMO, was rejected with more-graphic examples, but that I was encouraged to resubmit when the 3.0 Parental Controls were implemented. I subsequently re-submitted that application under 3.0, and it was accepted.
Despite all appearances, your boss is a thinking, feeling, human being.