I don't mean to in any shape-or-form minimize the amount of work you've done. And I can see there's several improvements. You (and your team?) seem like competent developers, and I have no doubt you'll keep improving it.
However, it's also kind of beside the point. All your work is built upon code in which you're not following the licensing requirements.
As you know, the code was made available on the condition that you contribute back either monetarily (via paying a 1 time fee) or via making your changes also open-source, to potentially benefit everyone else who is interested.
It really makes absolutely zero difference to me what you do. I'm just posting my opinion here as someone linked me to this thread and asked me what I thought, and I figured it'd make the most sense to me just being public with my thoughts.
I wouldn't say that you are untrustworthy as much as I'd that I'd never trust your operation. (Or maybe that's the what untrustworthy means? But still, it feels like too strong a word).
Of course everyone needs to make up their own mind.
To be perfectly honest, the reason that I wouldn't trust you isn't so much about the piracy/copyright infringement, it's more just how you're handling it. I just don't for the life of me understand why you'd let this whole thing tarnish your brand. And a brand that doesn't mind being tarnished, is one I'm scared of. Actually not very long ago (a couple months, at most?) there was a much bigger site (betking) that also violated the license and then pulled the "we modified it, so we shouldn't have to pay or open-source it". I too left them negative trust over it, as I reasoned that it's kind of ridiculous to trust a site that is happy marring it's reputation so easily (also their lying about it wasn't really inspiring).
Then a week or so later, they decided to scam all their investors.
Now I'm not trying to imply you'll do the same, but I just don't trust brands that don't fight hard to have a squeaky clean image.
I think you misunderstand what a character attack is. I believe I've only criticized your actions on account that's all I know of you. Violating the license is an action as a game operator! (Unless you've internalized this so much, it's now part of your character?! :S)
Despite this, I harbor you no will-ill and hope you go on to surprise me and build a successful business.
P.S. you build trust via how you act in situations like this, not in how much development or features you make.
P.P.S. why do you think it'll lower your competitive advantage in releasing your changes? bustabit built a multi-million dollar business on totally open-source code. A site is made up of a lot more than its source code. Actually the only reason I stopped publishing the source as open-source was for anti-DOS reasons. I was getting attacked by a bunch of people I pissed off on bitcointalk (lol...) and they kept reading my changes and the source code to better learn how to DoS the site. From a competitive point of view, I'm really not sure it matters.