The problem was Popuptraffic
So no, SI's not profiting from the exploitation of its advertisers. They may, however, be gaining free promotion for their own sites after terminating a member for cheating
The problem, as I read ebirds post, was amoung other things that
SI did not tell him that they THOUGHT that he was in violation with their terms, but IN BAD FAITH kept sending their pop-up pages.
When they termiate an acount for, what they think is, cheating, at least they could stop sending their ads, and/or send a mail describing WHY your acount has been terminated, and how to contact them (and then respond). Not doing so, I think is much worse than a publisher violating the terms, as they are often vere strict, and can be subjekt for interpretaion. i.e what's erotic material to some, is not to others etc.
And as I stated someone has either goten free ads OR SI has been earning money on ads that according to SI was in violation with their terms, and the adverteiser has therefore not goten what he was paing for.
With regards to blocking for traffic in certain countries, it does not appear to have been happening in this case.
I did not get proof that ebird had been in violation with their terms, and as wrote, it is SI alone that is prosecuter, judge and jury, in cases where they THINK that there has been a violation of their terms.So if they do not want to pay, they can say that you have been in violation with their term, close your account, but of cource keep making money on you until you remove their ads.
As publisher you have no other way to go than these board warning others.