1) Build app that clearly violates spirit and word of TOS, steals content, blocks ads.
2) Complain and act surprised like Google is being a bad guy when told to take it down.
3) ???
4) Profit!
Now they just need to some how spin in some automatic #droidfail hash tags to all the videos they show in the app and it'll be perfect!
Idiots.
(No, not the developers. I feel an immense sympathy for the people who had to work on this; their managers are the ones who are idiots)