I don't see a difference between this and Pinterest or Instapaper. The author says "In Instapaper (as far as I know) you can’t grab an article list from another user and package an eBook that you can then download." I would say that's something that Instapaper should/will add as a feature. Now I understand what the author is saying, but this is a bit paranoid:

Readlists is a service to allow people to completely avoid reading a content producers site, allowing them to repackage and redistribute their content all without permission.