Im actually getting ready to post my app to iTunes .
The app is a WiFi based app and it is dependent on an other hardware device to be up and running in the same WiFi network. So without this hardware device the user will not be able to login into the app and use it.
Hence I would not be able to provide in a demo account to Apple as they will not be having the needed hardware with them.
So the question is that, Will my app get rejected if the demo account is not provided?
My app was rejected because of that. So we had to find a way to let Apple test the whole app. The easiest way will be to provide a demo mode which enable/simulate all of your feature.