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No.

This is directly using (even hotlinking some assets) the OPs copyrighted materials.

FlatUI had 3 icons that were "similar"[1] to icons in LayerVault. There wasn't any clear copying of assets.

[1] for some values of similar, including "not similar".

Oh, the hotlinking of assets is murder waiting to happen. Show him whatfor!

The hotlinking is caused by a straight-up copy of OP's JS files. This is a pretty clear cut case of copyright infringement - a DMCA takedown is not abusive here.

Yes, hotlinking assets is exploitable! Someone could really have fun with that for a few weeks.

Is hotlinking copyrighted materials illegal?

That doesn't really matter in this case - the fact that the HTML references assets that are on the OP's site is pretty conclusive proof that this is a direct copy, rather than an "inspired design" or convergent evolution.

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