Pretty much, yes - if there's a buck to be made and the law isn't being broken (in a way that will be meaningfully prosecuted), someone will do it.

To answer your first question, someone from HN should surely about this given: http://www.istartedsomething.com/20130115/y-combinator-is-fu...

Extensive commentary at https://news.ycombinator.com/item?id=5059806