I doubt you still care about this, but I think I know whats wrong. You have to add in a few lines to deal with the applicationWillTerminate part.
Code:
-(void)applicationDidFinishLaunching:(UIApplication *)app {
NSUserDefaults *defs = [NSUserDefaults standardUserDefaults];
SwitchOne.on = [defs boolForKey: @"MYSwitchOne"];
SwitchTwo.on = [defs boolForKey: @"MYSwitchTwo"];
//for activating the state saver later
UIApplication *app = [UIApplication sharedApplication];
[[NSNotificationCenter defaultCenter] addObserver:self selector:@selector(applicationWillTerminate:) name:UIApplicationWillTerminateNotification object:app];
}
-(void)applicationWillTerminate:(UIApplication *)app {
NSUserDefaults *defs = [NSUserDefaults standardUserDefaults];
[defs setBool: SwitchOne.on forKey: @"MYSwitchOne"];
[defs setBool: SwitchTwo.on forKey: @"MYSwitchTwo"];
[[NSUserDefaults standardUserDefaults] synchronize];
}