Earlier quoted context omitted.
Agreed, it also seems a massive over reaction to what is, after all, a very small startup committing a victimless crime. Naming and shaming should be enough without dragging them through the streets of the web for a public stoning.
They are (a) copying other people's work, (b) passing it off as their own, (c) doing so for profit, and (d) unable to see why this is wrong. This isn't a gray area at all.
Personally, I see it as A. B, C, and D merely exasperate the situation, but without A, B, C, and D aren't an issue.
Of course, the follow up is if it's because of B, C, and D that it isn't in a grey area?