Apple wasn't "flip flopping" per se. They made it clear that they originally rejected a series of apps because they didn't have the appropriate genres to categorize them in. They even notified app owners that they would be given another opportunity in the future. Now that they have the new categories in place, the app makers were urged to resubmit.
As for whether it should be "banned" (which it never was, it was temporarily rejected for other issues not related to censoring), I'd like to know on what grounds one would argue that case.