I think you are making a mistake of equating ethics with legality.

Furthermore, I am not affiliated with YC and have never been even been to Silicon Valley. I merely use this news/link aggregator because the content and links interest me.

Linking to a site doesn't even mean you are condoning it. Would you really rather the mods censor content like this because they are worried about their reputation? I think that is the day I would stop reading HN.