Honestly, it really is right there in the guidelines. I understand many people don't agree with them (they do seem overly restrictive), but this shouldn't have been a surprise.
It doesn't make sense to me when developers make apps that are clearly against the app store guidelines and then complain that they get rejected.
I totally agree. Given the historical context (and assuming it's reasonably in line with history) I think it should be allowed.
I understand why Apple wouldn't want to sell "Stomp the Muslim" or "Nuke France" on their store, but some of the things Apple is preventing may be good social commentary. People were talking about Papers Please yesterday, would that be allowed? There have been a few social justice indie-games over the last few years, I doubt many of them would have been allowed.
It doesn't make sense to me when developers make apps that are clearly against the app store guidelines and then complain that they get rejected.