They have this rule, which they claim is one of their most common reasons for rejecting and app (from Apple.com):
NOT ENOUGH LASTING VALUE
If your app doesn’t offer much functionality or content, or only applies to a small niche market, it may not be approved.
This certainly suggests that the more you cut back, the more likely you are to end up rejected entirely at some point when you submit some unrelated bug-fix upgrade for approval.
It also suggests that iOS developers can't create useful apps that are just for their own family and friends. If Apple doesn't see the benefit to their other customers, your family and friends won't be allowed to have your app.
NOT ENOUGH LASTING VALUE
If your app doesn’t offer much functionality or content, or only applies to a small niche market, it may not be approved.
This certainly suggests that the more you cut back, the more likely you are to end up rejected entirely at some point when you submit some unrelated bug-fix upgrade for approval.
It also suggests that iOS developers can't create useful apps that are just for their own family and friends. If Apple doesn't see the benefit to their other customers, your family and friends won't be allowed to have your app.