Re:Google pulls ad blocking software from App Store
I think you may be confused. The app no longer works. All apps that were exploiting a security flaw that was fixed have been pulled.
They pulled the apps because they no longer work. Why is that bad behavior?
They no longer allow apps to set device wide proxy settings. Ad block was setting the phone's proxy settings to localhost and basically ran all your internet traffic through their app. They were honest and only blocked ads, but a malicious app would have had full access to everything you transmitted online.