Earlier quoted context omitted.
It's a bit of a joke to be honest. Hey are trying to market an app on the app store as a 'free' app. Not offering sign up also means they don't have to add the 'offers in app purchases'. So they're advertising the app as free. Even though its $99 a year. Apples 30% cut is obscene and should be less. But Hey are using a 'free' label to market their app.
You're catching some flak here, but I think it's a fair point. It says "free", but all you get for free is... an icon on your home page and a login screen. Apple could solve this by allowing a "Free, account required" descriptor/category for Netflix/Dropbox/etc/etc. So "Free" is a lie, but one many other apps have used beforehand.
They could add a "requires account" tag like they have "in-app purchases" but I don't think that would satisfy what Apple is looking for here (money).