Yes, I've been looking at the Etoy site
since about 1997.... it's been around since aroun 94/95. When you say "at the time of the suit" you are talking about a time when they had been already in a tussle with Etoys for months.
Sure, Etoy being Etoy, if someone messes with them, they don't miss the opportunity to speak their mind. If you've been in a similar situation (I have), you understand the gut reaction to mock the "tyrants." It's important to be able to do that, not just roll over.
What do you mean by the fake toys? Sure, they've used those little lego-esque characters, but I wouldn't think those characters would make anyone think "Etoys!" except for the lawsuit situation. Toywar, obviously, uses all sorts of Toy references, but of course, it was all about the war with Etoys.
I think you're trivializing the work of etoy and even the Digital Hijack project itself by your reference to "playboy" in meta tags; there's a lot more to it than that; it's like saying the WTO is best known for putting unflattering pictures of Mike Moore on its website. :-) ... But even that isn't really important; I may not be a fan of all of the work of eToy, but they should certainly have a right to the website they were operating for years... the Etoys tussle had been going on for months before the actual suit hit, and Etoy did respond to it, but it was Etoys who threw the first legal punches.