WpToGo is being discontinued in favor of the new WordPress app so unless you migrate over, you'll be stuck on the last version FOREVER :)
Well the rumor about the app has been around since January 1, so I seriously doubt there would have been any contract issue to simply say, "we're working on an app." And it doesn't seem like they hired the wpToGo kid to make the app, more that they used that as the base and made user interface adjustments. Or they could have just purchased it ourright (which is what Tumblr did with the best Tumblr for iPhone app -- they just renamed it and released it for free under the Tumblr name and discontinued Tumblette.
On the flip side, I making the decision to start a project like a WordPress client for a mobile phone should only be done with the realization that there will probably be an official version that will compete with your project, at least at this stage in the game. That doesn't mean it isn't still a worthy exercise, your app might end up being better -- but don't expect it to get official branding.
Edit: And that didn't show the quote I had included that showed the context to what I was replying to. le sigh.
Christina Warren http://www.christinawarren.com // Twitter: @film_girl