I upvoted you (really) because I totally agree with you: CEOs like you should be completely, brutally honest. Especially when this reveals you to be oafish and unprincipled.
This policy is good for customers (so they can avoid your products) good for investors (so they can avoid investing in your company) and good for prospective employees (so they can not).
I think that could make a fascinating blog post and then discussion on HN. If you want to ride on the back of this one (you know how HN has flavors of the week), consider it! :-)
I'd honestly rather you not be a dick than use the "brutal honesty" cop-out[1]. I mean, yeah, sometimes the truth hurts. But I'm not convinced this is such a case. And the fact that you see nothing wrong would seem to reinforce that lack of conviction.
[1] Not that brutal honesty is always a cop-out, mind you.
Brutal honesty tends to work when you are performing a critique, not when you're addressing a complaint from someone who unwillingly made your business money.
It obviously has some keen similarities to your situation (particularly in the "editor's response" department).
While I'm a fan of fair use (it's what makes the world wide web go round), I'm also a fan of attribution...and more importantly, of handling PR like someone who's the public face of a company. I think the responses here on HN show that most of us think similarly.
Apologising for plagiarism isn't artificial PR if you mean it.
All I get from this comment is that you basically don't give a shit, which also means you really should not be an editor as that role is entirely about accepting responsibility for what gets published.
Have you been taking notes from the tabloids by any chance?
If you have you had better have the bank balance to back the attitude because that is the only way they get away with this kind of shit while still remaining in business.