Yes
Last I heard, Google scans apps in a VM, similar method that anti virus software uses. In other words...NOT effective. Not sure, but I vaguely remember Apple runs the software on some big iPhone server thing, very closely simulating an actual iPhone. Not sure of the specifics, of course.
So to summarize...Yes. It is a big 'ole self-policed free-for-all storm of crap. Google really needs to fix it, it makes their platform a complete mess.