As of now, PhoneSaber will no longer be available, Ive had a chat with a guy from THQ Wireless (who own the rights for Star Wars apps on mobiles) and apparently the guys from Lucas dont want it up there anymore. They didnt want to go down the attacking cease and desist route, so were being dealt with very amicably.
They want to do some sort of official, Star Wars branded version of PhoneSaber, and will be working with us on that one. I dont know any information beyond that, whether they plan to charge for it, advertise with it or what, but well keep you updated on as much as were allowed to tell you.
PhoneSaber allows your iPhone to act (mostly) like a light saber, complete with sound effects.