The detail explanation as to why this removal is because the app developer mistakenly submit the app, when GPL requires that all software using the license should be able to be freely copied and distributed, but the Apple App Store rules are totally different. In Apple rules, all the apps can not be copied or distributed, each copy of an iOS app is tied to a specific user account when it is downloaded.
I believe many people will be sorry for the VLC app gone, since it's one of the best media players for iDevices. But don't worry too much, just bring the app to the Cydia, it will be okey!
Download VLC Media Player.