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From the take-down advice from Google:

"After a regular review, we have determined that this app is promoted as a means of carrying out spying or surreptitious tracking of others."

Of others. It's clearly not spying on other people.

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It's clearly intended for spying on the person using the device, who may not be the person who owns the device. The obvious example is the use case espoused by the application: you are a business who loans business phones to your staff, or you are a parent wanting to keep tabs on your child, so you install this software, turn on the option to not show in the status bar, and get reports of all activity from the person actually using that corporate phone.

The intended use case is actually a bit stranger: users are intended to install this on their own phone to report their behavior to one or more "accountability partners" so that they will be publicly shamed if they view undesirable material, e.g. pornography.

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