This issue has recently been brought to my attention and I've come back specifically to chime in my thoughts.
What is happening is toxic, really, which is what I'd say the market always was. The community bickering, buying and selling heads at extortionate prices, and egos beyond recognition.
To no end am I not surprised that this has eventually happened. Someone takes it upon themselves to obtain and distribute art that, to my knowledge of the artists I used to befriend and work with (even my rivals), had so much effort and emotion put into. We nurtured them and made those textures part of our legacies and our abilities. We would continue to showcase our skills whilst providing a great service to people who wanted to look so badass in-game.
I personally look back regularly at what I was capable of and am filled with pride.
Now, as much as someone can freely do anything that they want with a product they have bought I believe that if it's done in spite, as is much the case recently, it should be able to be closed as a result of insulting a fellow member of the community openly.
At the same time I would challenge the method this was done. If a product is given for free, I should be able to claim ownership of that product with a 0 value transaction. If this it is stated that anyone can use it, it should require the artist's permission to distribute.
I suggest we update the rules to give the artists have an implicit creative commons license on anything distributed so save our ego's getting hurt and the market going even further away from the idea place to become an artist.
That being said, I've been working on some textures recently that will explicitly be free to use for anyone because let's be honest who can afford anything these days.