If you don't want anyone to fork then don't OSS it no? Unless you have laws stopping people nothing else will. Surely finger waving won't help. I don't like what is happening but If it was me I wouldn't have OSS'd the project. Just that risk you take.
I really don't see morals ever stop anyone from trying to make a buck on the internet. Spammers, Mac defender scams, Big copy cat companies (you know, the guys that just go right out and wget your entire site recursively), Groupon (had to throw that one in), or whatever else you got. Nuts I tell you.
I hate to say it, but no one is going to remember you for OSS'ing or even forking a project. So it can go either way for both groups.
In the end people are only going remember the one that make the most noise (functionality, service, even drama). If woo takes off then people will quickly forget Jig.
Seriously, who remembers b2/cafelog? You know, it was a project later forked into something called WordPress. I'm sure you all know WordPress!