This is an honest question, I'd be curious to hear how you might differentiate this from music and movie sharing? I hope that people won't just down-vote me without responding. I am truly curious because I myself have mixed feelings about all of these issues as both a content creator as well as a consumer. It's hard for me to understand why certain types of art must be free for all, but others are defended vigorously…
It's one thing for somebody to copy a DVD for a few friends or family members, worse if they put it on BitTorrent, and worse still if they start selling bootleg copies.
I don't think there would be such a big outcry over this if it was a personal website getting a few hundred hits a month, or even if it was a moderately successful non-commercial project. Curebit had already received funding from Y-combinator and I assume their team were working on it full time, so in my opinion that's rather different to somebody cutting a few corners on a weekend project.