I think that for me, the question wouldn't be about Pastababe's decision, itself. Those of us who make Sim stuff do so for the joy of it. If something happens that takes the joy away, there's really no reason to keep doing it.

Since it's the actual making of the skins that I most enjoy, skin theft falls into "minor irritant" category for me. I share them with others as my small way of offering something in return for all the wonderful Sim skins, objects, etc. that others in the community have shared with us all. My game would be much less fun without that fan-created content!

So, basically, I think each person should make the decision that feels right for them.