I'm not clear on whether there will be 0 harm. Is it allowed to permanently redirect IKEAhackers.net to a new domain, where ads may be served? If so, why is that importantly different from the current situation?

If not, can the site stay up, and is Jules going to be able to invest the necessary time, without ads?

As the first commenter on the article says:

  your site HELPED developers and designers create new 
  products, and not only that, the last catalog was nearly a 
  tribute to YOUR BLOG! Telling us how we could use our 
  creativity with their products to make our homes our own – 
  isn’t that what IH is all about?

I'm going to guess the input from the content of the site is worth much more to the designers and developers at IKEA itself than any possible damage from brand dilution or commercial exploitation.