I think projects like this should be allowed to exist and that eventually people will grow very tired of how restrictive copyright law is and demand changes, but until that happens, I hope these types of projects continue to be created and spread in violation of the law for as long as possible until the lawyers finally come after them.
It's better that we see what kinds of things we could have without oppressive copyright laws and be upset when they are taken from us than for people to refuse to start cool projects just because they are doomed to be shutdown.