"Within the article ( and that's only what has been made public) there was more to this than not shaking hands."
Yes that seems evident. But the refusal to shake hands would, in my view, be sufficient to deny the applicants their request.
What I find very odd about this (and similar episodes) is that nobody seems willing to explain to these people that refusing to shake a proffered hand is quite an insulting and offensive thing to do. It's all about THEIR sensitivities, THEIR religious proclivities, THEIR feelings. No thought is given to the person who offers his or her hand and is snubbed.
To get down to basics,shaking somebody's hand is not going to kill them. If they worry that much about uncleanliness they can swiftly disappear to the nearest ladies/gents/gender neutral washroom and have a brisk rub down with a wire brush and some Jeyes Fluid. I'm sure nobody would mind (though they may smell a bit odd on the tube home). They are in a country where refusing to shake hands is insulting and offensive. They clearly don't mind offending people with whom they have dealings so long as their requirements are met.
When I travel to a foreign country I try to comply with the customs and habits that prevail there. Many of them seem daft or without foundation, but I comply because they are my hosts' rules. I don't set out to insult them by doing something that is clearly offensive to them. Why should anybody coming to Europe be allowed or even encouraged to behave in an offensive manner just because "it's their religion" (which it often isn't)?