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While I condemn what they have done, this is what you're open to if you try to create HTML5 games, as the whole UI is just one wget away.

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The un-obfuscated code and the level editor isn't available though. I believe the thief bought a copy of Impact to get all the source files - this could have happened with any product.

Is it possible to sell just obfuscated library?

In theory, yes. In practise, developers wouldn't like it since they can't deal with bugs in it or debug easily with it.

How is this different than any other commercial software library - once you have a copy, what prevents you from reselling it illegally?

While HTML5 games can be easily copied wholesale somewhere else (as can Flash SWF files generally) - the code is usually minified and not terribly useful to try to do development on.

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