Well, whether you do or not, if it's the sole platform you build on, you're at their mercy.
Violating the TOS means you should expect to get burned (and you've done it to yourself). Either they utterly failed at any kind of due diligence while designing this product or they're lying about not understanding Facebook's actions; neither really engenders sympathy.
I'm not a fan of FB, but this clearly is not some arbitrary evilness on their end.
You are bound by their whims, however. I feel for you-- it's unfortunate to have something you put your heart and soul into shut down without notice.
This is why I would hesitate before developing a facebook or iOS app. Being subject to the whims of some tech bureaucrat's interpretation is a little too discomforting.
Agree 100%. People have asked for a mobile version of this app, and one of the big reasons I won't do it (or build any mobile app) is because I refuse to invest a lot of time and effort into something that can only be distributed through a 3rd-party channel, with their blessing. I will not take the risk that Apple will not suddenly decide they don't like my app tomorrow. No way.