My first thought was that PHI was over reacting, but the more I read, the more I see potential for serious damage to PHI.
Look, if I made a site called techdirts.com and framed this site, what's the harm to Techdirt? None apparently. Even if I later sold techdirts.com, is techdirt directly injured? Not financially, no. But now, months and months later, I've built but a significant amount of traffic who are going to techdirts.com based on the content in techdirt.com. I've done no work what so ever, but hundreds of people have bookmarked or linked to techdirts.com.
Now, tomorrow I launch my new techdirts.com site with it's own content completely separate from what's on this site. I throw up some new graphics, new info, new articles. Put a big sign up that says: Welcome to the newly redesigned TechDirts.com! That way everyone understands things are a bit different and not worried that it doesn't seem like quite the same site. I've just stolen hundreds of users of techdirt.