Well, is it? The linked post is obviously biased, so I'd rather wait for more information instead of getting my pitchfork out immediately.
It seems to me that the nature of the app is whats causing the issue. From one of the emails they got from Google: > We don't allow apps with any code that could put a user, a user’s data, or a device at risk. Maybe they think the ability to execute arbitrary code is too powerful of a feature?
Trying to see it from Googles point of view though. Perhaps there is a useful distinction to be made between end-user apps, and apps and functionality targeting developers. There is developer tooling to be found outside the Play store. Far away from the general audience and the risk of causing them security issues.
I can't say I agree with it, and Droidscript could well be a godsend to somebody making good use of it.
There should be an avalanche of truly malicious apps and related dev malpractice they could root out from their platform before this.