I wasn't around for the specifics of this incident, so the following is in general (and more in reference to some of other specific stories I've heard or witnessed) :
Creating an entire industrial complex mod, using Minecraft as the core, is still editing someone else's work that you have no rights to. It does not matter to what extent you do the edit. The only right they have is to get credit for the build. That's it. It's not just Minecraft's core code they're using. It's the free resources from the community. This applies to 100% of Minecraft mods and mods for other games. No exceptions.
A personal feud with someone else that's snaking your bits is a different story, but it's also not the community's fault. Let it be known that the other guy is stealing your style, and that's it. Be the bigger person. Don't punish the whole community over it. You lose your high ground. If people don't understand your mod and use it "wrong" then make it "better". Or, let people get whatever enjoyment they want out of it. If people don't like Banksy's art, or try to copy his style, Banksy doesn't destroy the building he painted it on.
I've made mods as well, just not for this game. I'm not just shouting from the peanut gallery. Some of the comments I've read from mod makers has been driving me nuts for years now (note: a small minority. The majority of this community is absolutely amazing). Particularly the ones that are trying to turn their mod into the next facebook. Some of them take themselves way too seriously and completely ignore all those who came before them to allow them to make the mod they made in the first place. It's just taking, not giving back. I remain contemptuous.
(edit: BTW, feel free to disagree, I won't stop anyone from having a different opinion, just don't bother trying to convince me otherwise. My mind was made up on this subject long before I played Minecraft for the first time)
