Apple is fully credited and it is free, and he was careful to assure that it doesn't break the NDA or SDK agreement, so it seems fine. A nice app, actually, if not as useful as some of the fancier metronomes.
In a sense I am all for free apps raising the bar high enough to avoid some of the flood of trivial apps that people are trying to sell. I mean, one guy compiled the empty view project and tried to sell it as a flashlight app!
I am personally working on a timer which adds a couple of features to Apple's and plan to release it for free, with source code. I am using it to learn, and to help promote my site. Sadly, someone has just released a similar app which costs 0,79. I hope he isn't too disappointed when I release mine, although they are a bit different, with his being fancier and mine being more standard-looking and functioning.