If you can't beat 'em you can, at least, join 'em. Very smart move, methinks.
But as long as they are not being used for profit, what harm is being done? Why waste time and effort going after the very small guys?
It will make my job with students easier as we'll not be breaking copyright.
It's not so much "going after the small guys" it's more the legality of it. Rather than "allowing" people to break the law by "not" 'going after the small guys', as you put it, they have just made it legal to use their stuff.