iStock is probably the toughest microstock site to be accepted into. Really it's no bearing on your skills. They reject a lot of people simply based on the possibility that they already have similar images in their library. It makes no sense to me, as I can't figure out why a site would intentionally limit their customers' choices, but that's just how they operate.
The thing is, they are also one of the top sites in terms of profitability. If you're going to get into microstock, you want to be on iStock, and despite their annoying policies it is worth the effort to keep applying. At least that's what I hear, as I'm also still trying to get accepted there.
If you look in the thread about people's top producing sites, iStock is #1 or #2 on most lists.
And I don't see any need to worry about the 3-strike rule. If you get turned down a third time, just ask to have your account and ID deleted and wait a week or two before signing up again. But keep at it. Send in more images and hope for the best.