Daniel Jalkut of Red Sweater Software was just informed that he was denied acceptance into the initial round of iPhone developers (more reaction on his Twitter feed).
It's worth pointing out that this could just mean Apple's restricting admission to the beta program for reasons of scale, but let's hope this isn't a sign of things to come. Because these "things" would not be "good things".
UPDATE: David Chartier has more. Short story: it does appear that this is a temporary situation to keep the size of the beta program manageable. Probably could have been worded better or explained up front to reduce the "OMG! iPhone developer program iz exclusive country club!" factor (guilty as charged).