Apple\'s iOS developer guidelines state:
3.3.2 — An Application may not itself install or launch other executable code by any means, including without lim
Based on 3.3.2, they could reject an app for this. However, the scarier thing is that you could create the app, get it approved, have it be downloaded and used by many users, and then Apple could pull the app from the store.
Did you ever publish the app you described?