There's another article on HN right now about it, one of the comments provides some insight:

  He was not providing people with restore media they could use to 
  fix their own machines. He was taking the restore media, burning 
  it onto discs _with official Microsoft and Dell logos on them 
  and then selling them to computer refurbishers who would then include them with PCs 
  they were selling.

If that's true then I think it provides some justification. It's at least infringing on trademarks.

https://news.ycombinator.com/item?id=16923178