Google is usually thought to have a hands-off approach to the Android Market. But we have seen a couple cases to the contrary, and there are rules that must be followed. They have typically only pulled apps that might endanger user privacy or information. However, that seems to have changed with Engadget's revelation that a Nazi theme app would turn up with a casual search using "Jewish." Between the time Engadget posted their article and I went on the Market to confirm, the app seems to have been pulled. I was able to find another pro-Nazi theme by the same developer (which seems to run off pumping out random theme apps) but only after a search for "nazi"(as seen above). 

I am typically a staunch supporter of Voltaire's views on free speech:

"Monsieur l'abbé, I detest what you write, but I would give my life to make it possible for you to continue to write."

That said, I am glad that the app was removed. With a mostly "open market," we get benefits and negatives. This is one of the times where a negative rears its ugly head. Engadget has much more very thoughtful analysis of the whole situation, and I would encourage you to check it out. [Engadget