I don't know if they got the file themselves or if they just released it.
The GPL frees the code, you are still free to hack and release it — but if you want to connect to Linden servers *and* mess around with their policy, they might not allow you to use this client.
Sounds like the Doom Engine : the code is free, but don't redistribute the copyrighted WAD. It didn't prevent the code of the engine to be hacked and used, right ?
There are regional elections in France in about one month. The government tries to scare people on security matters — the good old "I want *everyone* to *remember* _why_they_need_us_ !". They want to pass the law before the elections, and gave it an "urgent" status that of course isn't justified in any other way.
I mean, it wasn't that bad when presidents acted reservedly - but now that Sarkozy starts to fuck up, sue people and everything, *while being protected of all judicial proceeding*, man...