"Today, he acknowledges that Apples about-face could be related to changes in the regulatory environment, but he thinks Apples new attitude comes down to one thing: Android."
I'd imagine nearly no one is buying Android phones because you can get a Bitcoin app for them. Chances are good Apple's lawyers said "shut it down, we need to figure this out first" and this is the end result. No conspiracy theories required.
I have extensive, direct, front-row experience with getting difficult apps into the store (though not Bitcoin-related).
The pattern you describe "shut it down, we need to figure this out first" is very accurate. The app is pulled while somebody high up figures out what the policy is going to be. Often the policy involves setting up safeguards (that you may or may not have already implemented) for abuse, user privacy, legal compliance, etc. These new guidelines are then consistently applied throughout the store (although some of them are unwritten and never make it into the official list.)