I think the real issue is that there is a misalignment of "business models".
On the one hand you have an open Source project with little funding relying on a small group of volunteers acting mostly out of a sense of social responsibility and on the other hand you have dishonest rip-off artists able to make money for free with little or no practical sanction applied.
Its not really google's job to police the web (Note I'm not condoning Google's behaviour). The extent to which they do this depends on how well that policing activity aligns with their business interests.
The root problem is profit Vs non-profit in an environment with dis-interested / conflicted and or toothless regulatory bodies.
IMHO Money is metaphor for power and as long as VLC/VideoLAN is a 'not-for-profit' organisation they will have problems.