The move wasn't 100% effective. Third party Android app markets, not run by Google, may still have some Android malware that Google can't yet kill.
Google has been busy ever since, explaining the issue (it doesn't impact older versions of the Android system) and describing how it will try to keep this sort of thing from happening again, working with its partners.
Some of the tut-tutting talks about how Google needs to be more proactive, scanning for malware before approving applications. And that's fine. But what's being lost is the lesson that began this post.
Someone has to take responsibility for software after it's purchased. That costs money. But it also requires a top-down process through which orders, once given, can be carried out.