Let me say that I think you're morally right, but it is probably not a reasonable choice of actions for the author and the users of the app.
I'm sure you believe that.
Do you work at Google in a position to supervise app reviews? Because if you do, then you can help straighten this out.
If you don't, then it is hopeless. Technically, Google has the right to drop any app for any reason whether it is fair or not (so suing them or something isn't an option). OP already followed the ONLY channel that Google provides (an "appeal" handled, I presume, by a bot that generally issues quick, automated rejections. Sure, I wish Google had a better policy, with some sort of genuine appeal policy which included genuine human review, followed a consistent policy, and most likely had a public record of decisions... but they don't.