1. Which license are the compiled binary files available under? Is it a case of "open" but not "free" (as in freedom)?
2. I agree it doesn't make it "bad" but that's not what the label says : ) Still, you should be able to solve this easily if you want by letting people use a different server/cdn. You don't have to agree with it as I'm sure you don't agree with all Google Play and Apple Store rules.