The submitter agreed for the app to be distributed in the App Store way, as is pretty well understood at this point.

If the FSF has a problem, they should take it up with the app's submitter, not Apple.

Did VideoLan misrepresent the app to Apple as being compatible with the App Store? That's the crux of the matter.

VideoLAN did not submit any application. A company named Applidium did.

Then it's Applidium's problem.