The writing style of the piece looks like a political mailer.
> The Google Play system has declared DroidScript is Malware and accused us of committing Ad Fraud! Needless to say, we are extremely upset and totally flabbergasted at this shocking allegation!
That kind of hyperbole sets off all my BS detectors.
As I go through the back and forth, DroidScript speculates this:
> Our main guess was that one of our users was experimenting with our AdMob ID after extracting it from our APK...
What I don't see is that they ever went back to the policies to check if that was legit. If it wasn't and you tell Google, "right, that was totally a feature but we've removed it," then, you just indicated that you deliberately implemented a feature that violated the terms of your agreement.
> How can they expect people to build organisations or businesses supported by advertising revenue, when they might be subject to this type of summary execution at any moment!
I agree that Google's communication with their customers is awful, but this is not a new problem: _you have to read your contract_. And that means get a lawyer to go over it and explain to you what it really means and not what you'd like it to mean.