While Jason goes out in public and says one thing, based the examples in Aaron's blog post he does just the opposite in practice.
Sites like Mahalo that auto generate content and scrape content are increasingly becoming a problem online as they clutter the search results and hurt the publishers they scrape and steal from. Google is doing worse than turning a blind eye to this as they actually are encouraging these very large "content providers" to create content for filling ad space (see the Wired article on Demand Media).
With SEO being an industry that has a negative perception by many, those involved in the industry feel the need to defend their profession.
In the above metaphor, the artists are the bloggers whose content Mahalo is using. The radio station ripping off the artist is Mahalo. The Federal Communication Commission is like Google, who is allowing all this to continue because the radio station is giving them a cut from the advertising revenue.
Hope this helps make it a little more clear why what they are doing is wrong, needed to get exposed and needs to get fixed.