my moral standing is lying down

Of course, it's all a big ego game. One of the comments on that link mentioned something similar-- they can't get over someone else MESSING WITH THEIR BABIES. If you want to take it as a mark of disrespect that someone loves your work enough to make their own stories with what you've created, okay. Don't make it out like it's "illegal and immoral" just because you don't like it.