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I love it when the "not lawyers" expound on legal issues.
Theft is theft
Copyright infringement is copyright infringement.
Copyright infringement is not theft.
Dilution only applies to trademarks not content that has a copyright. I have never heard of someone loosing their copyright on something to dilution.
There is one error in your quote above: "Copyright infringement is not theft." Wrong. It is theft.
If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of every one, and the receiver cannot dispossess himself of it. Its peculiar character, too, is that no one possesses the less, because every other possesses the whole of it. He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me.
Give them a break...they are likely trying to get a site started.