Some companies just don't quite understand the licenses on the software they use, or intend to comply but manage to make some procedural screwups. Those companies need a bit of education and help to come into compliance.
But for cases like this, where AVS has intentionally violated the GPL, and blatantly attempted to deny others the same rights they use themselves ("he asked AVM if it really meant to make that claim against the GPL software, and AVM affirmed that"), I think we'd all be better served by the "smoking crater to serve as an example to others" approach.