Seems to me it's effectively bypassing their checks - a developer can release v1.0.0 to the app store, never again update it, and push updates via this?
According to section 3.3.2 of Apple’s developer agreement, as long as you are using the CodePush service to release bug fixes and improvements/features that maintain the app’s original/presented purpose (i.e. don’t CodePush a calculator into a first-person shooter), then you will be fine, and your users will be happy. In order to provide a tangible example, our team published a (pretty cheesy!) CodePush-ified game to the Google Play Store and Apple App Store, and had no problems getting it through the review process.
(copy pasted directly from codepush site)