"To English-speakers’ eyes the difference between “Crabhouse” and “Clubhouse” are quite clear, but that’s not necessarily the case in other languages. In Japanese, the pronunciation of the letters “l” and “r” are largely interchangeable, as are the English vowels “a” and “u” in many cases. “Crab” and “club” is one such case and to make matters worse, when rendered in Japanese katakana script they become identical: クラブハウス."

This is clearly a purposefully confusing/punny name (it's unclear whether they made any money from downloads or if it was just an elaborate joke)... - it doesn't seem particularly draconian for Apple to wield their hammer in this particular instance...