I haven't looked at the source, and the documentation is nonexistent, but the example app and the routing look really close. See http://bottle.paws.de/ also.
Werkzeug had an example with the same semantics (decorator for URL rules and returning strings and response objects from functions) for a long time. But neither did Werkzeug come up with that, the original idea was TurboGears which did it that way. So by that logic, bottle is a cheap knockoff.
However, I do have to point out that denied is a joke which should be pretty obvious from reading the source and watching the screencast (and quite frankly, just by looking at the website in detail).
Every new framework copies something from existing ones. Setting routes with a decorator seems pretty obvious if you've seen Sinatra, and the templating language is more inspired by Django than anything else.
I haven't looked at the source, and the documentation is nonexistent, but the example app and the routing look really close. See http://bottle.paws.de/ also.
Edit: Made comment a little less harsh :)