Is it even possible to get such an assurance from Apple? If they do approve apps which violate your plain reading of the ToS, and reject apps which don't even seem to, what can you do besides roll the dice or stay out of the market entirely?
1. Build apps that adhere to the TOS (they didn't)
2. Break the standard TOS, but get written assurances from Apple in advance (they didn't)
3. Avoid the market (they didn't)
4. Take the big risk and hope things work out OK. (they did)
Obviously, #4 is a valid option...I just think it's a stupid one for a small company that can't afford to blow a year on something like this, but maybe they can. Regardless, how can you feel sorry for them?
Also, it may seem that Apple approved apps which violate the TOS, but does this developer know that those other app developers didn't arrange this in advance with Apple? I have a hard time believing that a company like Sega would risk so much time and money developing apps without first talking to Apple and getting some clear assurance that they'd be allowed to sell it when they were done. Why couldn't this company have done the same?