Earlier today I received a phone call from an Apple representative. He was very complimentary about Eucalyptus. We talked about the confusion surrounding its App Store rejections, which I am happy to say is now fully resolved. He invited me to re-build and submit a version of Eucalyptus with no filters for immediate approval, and that full version is now available on the iPhone App Store.
It really is a beautiful, very thoughtfully-designed app. In addition to the page-turning animation, Montgomerie devised his own typesetting algorithm to allow for hyphenation. I believe Eucalyptus is the only iPhone e-book reader with hyphenation. Update: I stand corrected: Stanza has (optional) hyphenation as well. We regret the error.