To call it as productivity app where it is obviously a tracking app is probably something that hurt your case.
Unfortunately the app is too close to actual spyware such that Google probably would rather close you down than risk this getting bigger.
Maybe you can make changes to your app so that it's not sending everything, just the porn sites and have there be some sort of notification to the user that the report is about to be sent. As it is, from what I can see, it could easily be used as spyware unfortunately.