I have to disagree with you about this being unfounded. I have presented the steps to do it. I have presented them with a video demonstrating the unit in action. A week later it still works. I'm not sure here but it appears this is a more widespread issue.
I'm not saying it is unfounded. I am merely posing another possibility (to which there are many) as to why they are showing concern :)
Update - One Week Later
It has been a week now since I contacted them and posted the blog. This is the latest development regarding my personal SL100 which I think a lot of you will find interesting.
It appears the Internet Radio has been blocked leaving me with a message saying Connection Error. I tried a different Wi-Fi network and still the same. I contacted them right away with this good news because it shows me they are trying to fix the issue. At first it is also blocked my Satellite signal but after replicating the steps I used the first time, I was able to "reactivate" the Satellite service.
I hope whatever method they used does not cause permanent damage to the SL100. There is no message about subscriptions, just a connection block. If I were to switch my service to the radio around Christmas or sell it I hope that whoever legitimately activates it is able to use the Wi-Fi component, which was the major draw to buy this thing in the first place.
If that is the case then I think they should be liable for damaging the unit. The reason is because I am cooperating with them to address the problem. Especially since I am not listening to the device, which means I am not stealing content and I have fully cooperated with them on resolving this vulnerability issue.
Looks like this guy got that cease and desist. His website has been removed.