well pal you're lucky that adsense responded to your application(although it is rejected..).because in my site it's been 3 weeks now and no reply from adsense staff .. cheers! best of luck to your site.
That google is slowly getting smarter about accepting sites and new publishers. When I joined, it was like less than a day to get accepted. About time they looked at sites more closely and started rejecting those sites with nothing to offer. And I believe that they will soon look at present accepted sites and start closing those that have nothing to offer. Publishers are the driving force behind google accepting or rejecting sites.
Well, i dont think that sites with big traffic and click-rate (or whatever) will be rejected, because these sites means money. Not only for publishers, but for google too. Thats my point
even so, if it contains objectionable content they wouldn't approve it. their reputation's worth more than a high-traffic publisher can give.