I think what surprises me most about this situation is that even though the supposed offending apps, Songs in particular has been downloaded and installed between one and five million times but only possibly generated the author a few thousand Dogecoin. Seems like a big risk for a few dollars, wouldn't advertisements be more profitable option?
That's putting a value of zero on being fined (or worse). I don't think the risk is non-zero. Just takes one zealous AG to file a case against you (even if you're out of jurisdiction, there's a non-zero chance you might end up passing through at some point).
Yes, that's definitely true. I don't know what kind of vetting is performed for free apps on the Play Store, but for all we know, couldn't it be someone pseudonymous in a non-extradition country uploading via Tor?