Guys, digital synths cannot produce nearly as perfect of square waves as analog synths, because digital audio is a summation of sinewaves. While nothing is truly perfect, digital synths are "consistently" imperfect, because instead of a square wave you end up with a very steep sinewave, or more accurately a summation of several sinewaves to account for the harmonic overtones present in a square wave. The higher the resolution, the steeper and more accurate it gets.
Compare a square wave sound in a typical soft synth at 44.1k to a the same square wave at 96k. Bounce wave files out so you can a/b them. There are a variety of approaches/algorithms, so some softsynths may do this in a more audibly pleasing way, but there's no beating physics.
The good news is, at 96k or higher, you get a square wave that is audibly indistinguishable from analog on all but the most revealing/expensive systems. But, so far Apple has yet to put out a mobile device capable of 96k. iPhones, iPods, and iPads max out at 48k as far as I know. Even if they were to support 96k or higher, the cost-effective DACs they'd be likely to utilize (after all, these are mass-consumer goods geared at folks who think mp3s sound great) would almost certainly lose clocking accuracy at higher resolutions.
Further reading:
http://en.wikipedia.org/wiki/Square_wave
http://en.wikipedia.org/wiki/Nyquist–Shannon_sampling_theorem
Not trying to derail the thread or spoil the fun. It looks like a fun app, and really sounds good for what it is. I especially like the X/Y pad automation, how it resembles Pong. Totally awesome concept.