I think the real problem here is people have gotten away with reproducing content for so long, they think it is their right to reproduce it, then SEO it, then rank for it.
Right! I have seen ODP dumped directories with Adsense slapped into them to try and earn a buck.. That alone is no different from a scraper site. It is like - Hey! I'm going to scrape your content and make money on it.
moftary: In relation to your problem, which applies to a few others here:
Google does not have to update their TOS because they say it already in Webmaster Guidelines:
Create a useful, information-rich site, and write pages that clearly and accurately describe your content.
This does not mean dump or scrape content into your site.