That's just bad business. It's like the MPAA and RIAA suing their customers. In the short run you can bully a few independent people but, in the long run, you are eroding your user base -- or developer base in this case.
I consider the apps in question fair use. Now, I've never read google's TOS but, then again, neither has anyone else. You'll notice that the op was working with the system to try to understand its rules. That's the quintessence of what a hacker does. It seems to me that google is making themselves vulnerable to an open app store. One where you can experiment and collect user feedback before committing resources to a project.
I consider the apps in question fair use. Now, I've never read google's TOS but, then again, neither has anyone else. You'll notice that the op was working with the system to try to understand its rules. That's the quintessence of what a hacker does. It seems to me that google is making themselves vulnerable to an open app store. One where you can experiment and collect user feedback before committing resources to a project.