i don't get this whole "controversy" thing
Personally, I believe Real is awfully stupid for this move. It's one thing to release a competing application for the iPhone, it's another to "Dare" someone to shoot it down.
I'm surrounded by techies and neophytes alike and not a single one of them use, or have even heard of, Rhapsody (well a few, who associate it with the crapware that comes on new PCs). So what if Apple rejects Rhapsody? HOW many iPhones are there out in the market? And how many Rhapsody users are there? And how many iPhone users who use Rhapsody are there?
Oh wait. iPhone.. doesn't that need iTunes?
Come on Real, get Real.Hurry up and die already.