They are competitors for entertainment eyeballs anyway. Usually, competition is defined by a market (i.e. what customers get from them), not by how they manufacture their product. Of course, each litigant will construe the situation that best suits their case. related: "B. Market Lies" in http://blakemasters.tumblr.com/post/21169325300/peter-thiels...
It might make it easier to prove there is malicious intent. If I'm in a completely separate business and I make a remark about your business practices, one can see it as an outsider making a (negative) observation if the language is only mildly disparaging. If I'm in the same business as you, it might come off as more of an attempt at me undermining you or trying to gain some benefit.
Ultimately it probably doesn't make much difference, in that defamation is usually difficult to prove anyway, but the context could sway things a bit.
It doesn't look like http://bearfood.com has advertisements so he isn't looking to make money on it. That's not to say that ads won't show up at a later date though.
Meanwhile, it's pageviews for everyone.