So... having read through their marketing material, this is an on-device tool that opens up what appears to be most of the Android application API to at least the user of the device, and potentially to any Droidscript applications they grab from other sources, and... maybe to other apps on the device? It's not clear from a quick read how extensive the runtime control is.
So just right out of the gate this is defeating basically the entirety of the Play Store vetting process. Droidscript itself may not be engaged in advertising fraud, but it makes advertising fraud trivial to deploy. (And it needs to be said: this is the kind of app that would never have been legal at all on any version of iOS.)
Add to that that it's a closed source IDE for an open platform, and my intuition sides with Google here. My guess is that when details come out it will turn out that at-least-plausibly harmful Droidscript garbage was being pushed to users and Google decided to kill it.