Argon contacted me a couple days ago, asking for a reasonable conversation and apparently willing to cooperate. We had an IRC conversation where I explained what the problems where and how they could fix them.
The end result seems to be that Argon has removed everything that us and other homebrew developers have produced, including all of the channels except for WAD Manager (waninkoko obviously let them use that). The Twilight Hack is gone from their archives. I haven’t checked whether they use my nandloader. I suspect they do, but I hope that if I confirm it and tell them they’ll get rid of it too.
I’m not sure they know what a nandloader is or whether the one they’re using is mine… Jan 16: Argon has informed me that they are not using my nandloader. What they didn’t remove is the illegal IOS16, the illegal cIOS, the illegal banner, etc. They probably realized that there’s no chance of argonchannel existing in a usable form without stealing from Nintendo (at least not with their skillset), so they decided to take their chances. Fine with me – it’s not my problem.
Update: Argon contacted me again on Jan 16. I guess they’ve finally seen the light – they’re getting rid of the illegal 3.4 firmware installer and the copied banner. The current downloads are supposed to be going down soon and a clean version should come up on Monday.
As far as I’m concerned, the battle is over with the homebrew scene.
Nintendo can still get these guys in a load of trouble though, as things currently stand. Most modchips are illegal in some countries, but, well, the current Argonchannel installer is illegal in practically the entire world.