Do note that Kodi said to "ask them to stop." Not "tell the police and YouTube and get them shut down." That's where the "And let us know" comes in: Kodi will then presumably write up official C&D letters and all that.

But if someone I follow on Tumblr links to one of these pirate boxes, I'm going to message them about the shadiness of the whole thing. Not report their blog or anything major like that, just message them. I think that's all Kodi is asking us to do.