Yeah, that's how it works for the Android app too. To be honest, I've never used SMS because I have no interest in it, but because it was free with my GV account, I've sent a few using the service. But I've read elsewhere that there are other apps on the iPhone that can do SMS, though this wouldn't be the first time Apple used absurd logic or double standards when it came to rejecting apps.

Does anyone know if Apple has given an "official" reason why they pulled the apps?