I think most of you are arguing over the wrong thing - a thumbnail doesnt belong to the original owner of the photograph, so nothing was stolen - the tgp can do what ever he wants with the thumbnail he made.
http://www.out-law.com/php/page.php?...77&area=n ews
Also the point of a company going out of its way to attract tgp owners by building free hosted galleries for them to promote and them canning their account when they promote them the way the vast majority of tgp's do is just insane - if this is such an issue they should leave the tgp game altogether or get a new sales rep who knows what they are talking about.