Like any good Catholic story, this one has plenty of nuance and detail that some media outlets didn't get exactly right.
First of all, the app isn't a replacement for traditional confession, as some early accounts suggested.
It also has not received the endorsement of the USCCB, as other outlets have alluded. (It's nothing personal. The USCCB simply doesn't endorse products.) As this CNS story explains, the app has received the imprimatur of Bishop Kevin Rhoades of Fort Wayne-South Bend, Indiana, meaning the local bishop has signed off on its release and said nothing about the app is contrary to Catholic teaching.
Further confusion has come from the fact that one of the priests involved in developing the app was Father Thomas Weinandy, OFM Cap., the executive director of Doctrine for the USCCB. And while this involvement would seem to suggest USCCB approval, Father Weinandy's role in the process was not in his official USCCB capacity.
By this point, news of the app has circled the globe, drawing comment from secular media, Catholic media and even the Vatican spokesman.
Apart from being a ton of free publicity it's generated for the app itself, the energy behind this story suggests a real interest in the Catholic Church when it engages contemporary society, especially through new media. One could argue, for instance with Pope Benedict's recently urging of Christians to engage the world of social media, that this enthusiasm is mutual.