VLC Player for iPhone and iPad has finally been pulled off the App Store.
Stating that on their official blog, Rémi Denis-Courmont, the lead contributor of VLC project stated:
This removal thus culminates all the speculations that were happening since Oct 2010 when Rémi Denis-Courmont had announced that they have sent a copyright infringement notice to Apple since they were violating the GPL license that VLC has been licensed under, by applying DRM to it which allowed users to install the application in 5 iOS devices only.
Apple therefore were left with 2 options: Either modify their iTunes Terms and Conditions to allow GNU licensed application or to remove the application from their app store altogether. And it looks like they chose the 2nd option.