Also note that Mahalo enjoyed that level of traffic based on auto-generating pages through shagging third party content (without requesting permission and without any way to opt out of getting your content scraped, since they were pulling in the scrapes from Google's search API & you couldn't block Mahalo doing that without blocking GoogleBot).
In the past when Matt Cutts wrote of such MFA scraper sites he described them as "shoot on sight" http://www.mattcutts.com/blog/im-on-webmasterradiofm/#commen...
"In the chat room, I said hello to teeceo, but I know the stuff that he was doing and it’s shoot-on-sight. I think anyone who is blackhat knows (or should know) that I’m happy to talk to anyone, but that we’ll still take action on the spam we find."
And yet you have sympathy for Jason? Shows how powerful his public relations skills are! :D