Also, I'll send an email to EVERY registered account on the device when it is set up, instead of only the one they pick. That will make it even harder to use this for spying on someone who doesn't specifically want to be spied on.
This seems the best thing to do to distinguish your app from spyware. Even if you published it with the best of intentions, you've gotta admit that the features of the app can be abused to spy on the users without their knowledge. If you can reliably alert the user that they are being monitored, maybe that could help get the app approved again? For example, every X days, there is an alert stating that the app is installed and is monitoring website visits.
More than that, you need to make the persistent notification unremovable.
"Your Internet browsing and application usage are being monitored by EverAccountable, and will be reported to <email addresses>."
If the application's intent is indeed to keep its users "accountable", then surely reminding the user that they are being tracked, and by whom, should only enhance this purpose.