Both sides agree with the facts of the case:
- Developer used his credit card to enrol in multiple accounts
- Developer had same test devices on both accounts
- One account engaged in fraud
- One account was notified of fraud
Apple's request is that the developer make these facts known and have his account reinstated. Because Apple doesn't want to be seen as arbitrarily shutting down developer accounts — they have reason in this case and want it known.
It seems like Apple was sympathetic to the claim that the developer lost control of / forgot about the account which had the fraudulent activity. But also wanted to be seen as having a reason for pulling Dash in the first place.
They weren't asking the dev to admit to fraud. They were asking him to admit to opening multiple developer accounts and losing control of one. Which both sides acknowledge he did. I'm not sure I understand why the developer thinks this would be an admission of wrongdoing on his part (unless the wrongdoing was opening multiple accounts and giving them to untrustworthy people, which he did).