Interesting story for sure, but I don't see anything wrong with it on several levels (seems implied, but I may be wrong).

1) It was an acquisition. Didn't Google also have C# when they acquired Writely? Don't think it was advertised much either.

2) Python is a language. Eventually that get's compiled down to probably native C instructions at that time, right? Probably not like it was an open-source module distributed in violation of a license?

What I like though was how the author and Microsoft did to "get it shipped."