As for the first issue, "first tag in page title" isn't uncomfortable, it's more relevant than you think. For example, if my question is
why can't I get the listbox to work with strings?
that has a different (and certainly more useful) set of meanings as
C# - why can't I get the listbox to work with strings?
This particular scraper had the right idea to put the most significant tag in the title, at least until Google offers some meaningful, blessed microformat for tags. (and note that if the tag already appears in the title organically, eg the user added it somewhere, we don't add the tag to the title.)
As for the second issue, ask yourself how many Wikipedia scrapers you regularly encounter.
Or, stated another way, what kind of business model is "copy the freely copyable Wikipedia content, and republish it with ads on it to harvest the clicks?"
Not a safe one, clearly.
Further reading that may be of interest to you:
http://www.google.com/support/webmasters/bin/answer.py?answer=66361