On the same grounds that a local supermarket has a right to and should refuse to sell soft porn magazines, Google was right to ban this. However if someone wants to install it for the right reason, they can install it as a third party app.
But if someone does not want it installed, this is as good an opportunity to remind people to lock their phones so that unauthorized use is prohibited (meaning use a lock pattern or password or something) because once it's unlocked most smart phones let anyone install an app. This app is not a trojan horse, because the person installing it knows exactly what they are doing. This is merely an example of what can happen when you allow someone unauthorized access, or if you blindly accept access from an authority figure like your parents, your job, or your school (see the Lower Merion Township case for more on that).
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