Honestly, I think its a mistake for Google to reinstate. It sends a message that with enough backlash, you can get your app put back up. It also opens Google up to legal liability for every app that didn't get the same treatment.

They should be confident enough in their first decision, and if not they should just remain silent and not cave to pressure from a bunch of people on the Internet. It's their platform and they can do what they want. If you don't like it you can get a different phone.