I've reached an all new low in posting quality and am now going to just post a comment I wrote on this blog. Yes, that's sad. I spent more time drafting a comment than actually trying to, you know, write a post on this blog. Shame on me.
Work was slow today, so I went ahead and read the entire thing.
It seems to me that people are/were confusing what is legal with what is morally ethical. According to your research, Minnu did not violate the EULA at the time. But the way she did it struck a chord with people. They knew/know something is not quite right, and that something should be done.
In each post and the resulting comments, a constant hymn was that Minnu was ethically wrong for 'stealing' skins. Ok. That's fair enough. But due to the license, she could and was able to do so legally. That's all there is to it. Ethics, morality, and all that, however noble, cannot deny that there was nothing to prevent her from doing so. If there is a case.
For a real life example, many consider abortion to be ethically wrong. However, it's legal according to the law and no matter how much mewing is done by however many people (barring another bill or court case) it will remain legal.
The take home lesson here should be that if you're going to release something, draft a license so specific people won't be able to wipe their nose with it without your permission.
As for irresponsible blogging, this really isn't much of a surprise. I'd wager about 95% of bloggers aren't any kind of journalists, just regular ol' people banging away at the keyboard (before everyone leaps on me, know I'm one of that 95%). Doing research and covering a story is HARD work and often bloggers are just not going to care. Throw in a lack of editors and you get things like this.
The wonderful part about the internet is that everyone is free to express their opinions. The sad part is that automatically shuts down the typical user's inhibitions.