So basically the message being promulgated here is that it is ok for the
LK8000 team to take someone else's copyrighted work (which is distributed
under a licence with strict terms stating how it can be used/distributed),
create a derivative work and shirk on his contractual obligations with the
original author?

And that we should all help and support the LK8000 author in undermining
this agreement by keeping the distribution channel 'underground' so that
this distribution cannot be so easily proved by the original (XCSoar)
author, thereby leaving him with no redress?

I think those that are using LK8000 need to take a step back and ask
themselves whether what they are doing is really acceptable.

NB I have played no part in the development of XCSoar or LK8000, but as a
coder who was worked on several GPL'ed projects, I would be MIGHTY pi55ed
off someone did to me what the LK8000 lot seem to have done to the XCSoar
authors. Plus, I wouldn't be surprised if the authors of LK8000 suddenly
decide, post-beta, to make it a commercial product. I have seen this kind
of thing happen before...