Smile just sent out a press email confirming what they shared in a Google group earlier today: following a rejection by Apple's review team, TextExpander touch is going to be revised significantly to stay on the App Store.
Yesterday, after a period of engagement with the App Review Team from Apple, they informed us that TextExpander's use of Reminders for shared snippet data storage is not an intended use of Reminders and will no longer be accepted. TextExpander touch will not clear review until this is resolved. Apps which implement the current TextExpander touch SDK may not clear review until their TextExpander touch SDK is updated.
To expand snippets in iOS apps that integrate with the TextExpander touch SDK, Smile relies, essentially, on a hack that lets them store snippet data in the Reminders database (it used to be a persistent pasteboard before iOS 7). Smile is bending the rules to make TextExpander touch work seamlessly within apps, but it's still sad to hear that they're facing technical issues because TextExpander touch is a great app that, to my knowledge, never caused problems due to its workarounds.
Smile is looking for an alternative solution and they want to publish an updated SDK by Monday. They are considering x-callback-url, which would make apps store TextExpander data in their own database but lose the possibility of syncing snippet changes with the main TextExpander touch app. It's not good news, and I hope that Smile can figure out a solution soon.