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They already are? When an American company does it no one cares but when a Chinese company does it, it's shamed publicly in America as a distillation attack?

Only any who hypocritically want protection for their own models (are there any?). The morality of scraping everyone is arguable; it's when you object to being scraped back that you reveal yourself as a scoundrel.

Yes. Two wrongs do not make a right.

If the results of the distillation are released freely for everyone to download, I wouldn't even call it a wrong.

Big models are built by scraping the recorded thoughts of everyone, so giving everyone a chance to run a distilled small model is just going full circle.

Obviously the underlying motivations aren't 100% altruistic, but I'll still take it.

Nope, because I think releasing open weights is far more important and realistic than ever expecting the big American AI labs to change how they do things.