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All I could think reading this post was "damn, too bad this conversation didn't occur on Inbound.org, that would be good for this community." But some good thoughts in the comments there.
I tend to agree with Joe Hall but on the other hand SEO spamming is immoral as well if you ask me. That's why I neither spam nor out.
Here's a question, is there a difference between publicly outing someone versus privately reporting them? In some ways, isn't the former more honest?
If outing were a regular occurrence, surely customers would become better educated over time? "Being careful" would become as important as "getting to #1", which would also reduce unreasonable demands on good-but-ethical SEO's?