The name of this hack is ambigiuous. When you imply hosting and vBulltin in the title, it gives the impression as if you were allowing others the ability to host their own vBs; clearly against the license. With such a title, this hack asked for Jelsoft's attention.
I've never heard of this hack until I read parts of this thread, and I'm not 100% sure as to how it works. When you say sub-forums, I assume you mean categories on your forums that you allow moderators to control? Certainly not an actual subforum--meaning sub-vBulletin system, for that obviously voids the license.
In the former case, I see nothing wrong with the hack, but I know not of all the details and Jelsoft's justifications. (nor do I really care about this whole argument since the hack itself is unappealing to me, but it's something to read I guess).
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