True. Apple can also choose to stand their ground, which would likely work if the developer doesn’t have the resources to fight a court battle. There may be other viable strategies for them to remove this application in whatever legally valid way.
Still, a plaintext interpretation (as far as I can tell) of Apple’s current rules seems to favor the developer, given the circumstances.
Why go to court instead of changing the rules the next day so that the app more obviously violates them and remove it anyways?
What developer are gonna to go to court for the few weeks or months when his app was removed for ambiguous reasons?
Terms and conditions mean nothing for Apple. They are solely to restrict developers how Apple wants. They give developers no rights in practice. Only the illusion.
Strong case? Apple can change the rules tomorrow to whatever they want.