Yes if they think your App has errors and is not self explaining or working properly it is ok to reject your App.

Is it ok that you can only develop for the Playstation if you are a game development studio? Yes I think so too.

You're not a fan of the relatively low barrier to entry on the WiiWare, Xbox Live Arcade, and Steam platforms? You don't enjoy relatively new people creating games without large war chests or corporate backing? That's too bad. :c