I've found that if you attach any pictures at all: rejected.
So what I've taken to doing is adding the business without photos (almost always accepted), and then trying to attach the photos later after that goes live (mostly works). But I agree, their process is completely broken, and I doubt they have any incentive to fix it.
Question here then, is when will we see a competitor enter the market who both cares about getting it right and is actually able to compete with google maps