>In which case, CrabLang wanted to use the Rust trademarks to deceive people into thinking it's endorsed by the project and foundation.

Instead, I see their statement as a visceral reaction to some legal threat they received that they don't think was valid. They probably weren't trying to deceive anyone, they just wanted to name their project "Rust Widget" or something and don't like that they are open to legal action from that because someone might think that's an official Rust project, when it's not... Even if most people would know it's not.

I'm not privy to any information in this debate, I just don't support your interpretation of their words. I think mine is a more charitable interpretation until further evidence of their actual meaning comes to light.