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My guess is Nike+ infringement of some sort?
How? I don't see anything that relates to Nike+.
Nike+ does monitoring of running and Pedalbrain does monitoring of cycling.

Apple/Nike may have patents on "exercise monitors".

From the Nike+ wikipedia article(http://bit.ly/aJ9u0U):

As of August 2008 "Nike+iPod for the Gym" launched, allowing users to record their cardio workouts directly to their iPods. No Sport kit or shoe sensor is required; [..] The models of compatible cardio equipment include treadmills, Stationary Bikes, stair climbers, ellipticals, and others such as Precor's Adaptive Motion Trainer (AMT).

No. It is almost exactly the same as Garmin Forerunner (which also can use a pedometer).
wow, that's nice. i'll be sure to not think twice about hooking my wagon to apple.
I don't think any of us have enough info to merit freaking out about this...

From their blog:

Down at Apple's Request

Apple has notified us of an issue. We’re in the process of resolving this and fully expect to amicably resolve it. Unfortunately till then we are forced to shutdown our website. We’ll provide updates as they happen.

http://blog.pedalbrain.com/

The fact that they felt the need to shut down their website over this issue suggests something is a bit off. It may be that the issue is quite a bit more serious than they're letting on. It may also be that they're unwilling to start with less extreme steps because they're scared Apple will ruin their business if they don't immediately and fully comply with Apple's wishes.

If it's the latter, it suggests that Apple has a bit more power than I'd like them to.

I hope this is an little glitch which turns out to be an obvious oversight (<-oxymoron?), because this just stinks. What an awesome idea for a product; it could potentially drive Apple sales in some circles.

Waiting for more info

......................................

(wild guess) It may be as simple as they haven't completed a Made for iPhone contract with Apple yet, but they are advertising an Apple hardware extension.
This sounds very likely. I used one of their graphics prior to their recognition of receiving my contract and they weren't very happy about it.
If you put things on a pedal stool you are just asking for them to get knocked down
(comment deleted)
From the Google cache of their site, they claim their product works with any ANT+ compatible sensor. ANT is the same wireless protocol used by the Nike+ sensor. There aren't any public APIs in the iPhone SDK to access the iOS devices built-in ANT receiver so my guess is they are using undocumented APIs possibly to gather data from these bike sensors which Apple would presumably have a problem with.
ANT+ is not the same as ANT.

Apart from that, you may be correct unless the bastards are doing a C&D on "grounds" of their frivolous bike stuff patent application.

Edit: paragraph.

ANT+ is built on top of ANT if I've read the documentation correctly.
ANT is not a single standard as such. Manufacturers had their own incompatible versions of ANT.

ANT+ on the other hand is a standard so that any ANT+ capable devices will be able to communicate with eachother. I assume there is some intellectual heritage, but the two are distinct.

But why would they have to take down their website? That would be an issue in their app, not in the website itself.
Don't want to advertise something that might not be able to exist in it's current form, who knows. When you enter the legal realm people act in strange ways.
Because it's a good publicity stunt?

I certainly hadn't heard of them before this.

Nor had I, and now I want it. That's a job well done, marketing-wise.
I thought their product used a hardware cradle that contained the ANT receiver and presumably communicated over the dock connector, so that they wouldn't have had to use any built-in receivers.
Just talked to them. They claim it actually is a miscommunication involving Apple's 'Made for iPod' program and that the site should be back soon (apparently a third party retailer had marked their item as "On Sale" without permission, which is a no-no) . Also said they're on track for a release in Sept/Oct.

UPDATE: Looks like the page is back in action: http://en.pedalbrain.com/

Is that on purpose that Free account comes with 3 Minutes of Data Resolution, while paying 6 bucks will allow only 1 minute?
Sounds like it's going to be expensive (then again, a lot of bike accessories are). I'm very happy with my CycleMeter app ($4.99 in the App Store) and putting my phone in a secure pocket while I cycle.

If I was "serious" about cycling (I cycle daily to get to and from the office, so I'm a frequent cycler but that's the extent of it), then this thing looks pretty neat.