it is not an app that will be available on the App Store. It is a web-based service that will be designed with the iPad in mind. Therefore, it will not need to go through Apple's approval process.
There is a rather cool iPad amateur video in which a hot woman, naked is playing with an iPad - using it to cover the naughty bits, but what you see on the screen is the... naught bits (not necessarily hers). Very well done.