i write this at the risk of being downmodded (and i don't have enough karma!)
Why is this such a big issue? The only tangent I can draw to this is the story about the cop tazing the grandma("you didn't need to" , "oh i was following procedures")
It's not like another distribution stole this logo and used it to get traction based on Arch Linux? It's a small business owner who used it as a 'casual' download-and-use-it manner..and He used the logo for his Ace Driving school - which was clearly displayed on the car. It was not the case that He was a pirated software distributor taking advantage of the Arch Linux logo.
He was a layman - oblivious to online copyrights. He saw it on the web,liked it and used it. simple from his point of view. I am sure he knew about copyrights and other issues - but related to 'paper' business.
There are bigger stories of people deliberately stealing photos/digital art. There was this one story about this big designer who downloaded a creative-design from an artist's flickr account for a new designer shirt. This artist only came to know of it when he visited this showroom to buy one. Then there are always stories of magazines/newspapers flicking photos from flickr without proper attribution. (i don't recall the links, nor am i going to spend time searching for them - atleast now)
I am not contending the fact that he didn't steal the logo or he didn't lie. He did both.
I also think, acts like 'threatening' is not what the hacker/foss community should resort to. It only alienates community from the layman.