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I've seen it in a few places. Oddly enough, although content theft is offensive enough, what really annoys me is people answering posts in forums, etc. by doing a direct copy and paste from a web page as if it was their contribution. Half the time they don't even read it. lol . . . .
Like any other Javascript defense mechanism, it's easily thwarted, but I guess most of those that would steal for *any* reason aren't smart enough to figure it out, so I guess there's some good to it.
What gets me about it is that they will annoy more users than they will stop copying of their text.
I wonder how long until Opera and Firefox add it to their list of scripts to ignore. They have it for disabling right click and a couple other things too.
I also wonder if IE8 will bust this logic so it's users can take advantage of "Accelerators"
Obviously IE8 Accelerators won't work unless you can highlight a piece of text.