That is not the concept of the GPL though. They need to release the source for the entire derived work, not just that one component. It's not Wix's choice -- it's required by the license, and the act of incorporating code under that license makes them bound by it.
For a letter written by a CEO, this one seems strangely oblivious to the real issues. Did he run it through the legal department at all? (Presumably not, since it's the weekend.)
Abrahami writes: "If you believe that we need to give you credit" -- but that's not the issue at hand. It gives the impression that he doesn't understand the differences between open source licenses, and that can be a serious liability for a company that builds so heavily on other people's code.
[Edit] I actually wish the GPL were finally tested in court, because that would resolve a long-standing question around its enforceability. The CEO of Wix admitted that the derived work in this case contains "more than 3 million lines of code"... The copyright owner of the GPL'd module could sue them to have all that released under the GPL, and (assuming Wix wouldn't comply) then we would finally know if the license holds up in court or not.