Am I right in saying that the Spanish in the iphone app is that of Latin American Spanish?
Yeah, I would say so. It does not include any "vosotros" grammatical forms used in Spain, for example. It's a very "neutral" Spanish that you can use anywhere. I have a M.A. in Spanish.
Yea it's a bit of a downside that there isn't any vosotros because it's very common in Spain (people don't use Ustedes very often any more in my experience).