I came across an article a few weeks ago interviewing various developers at e3 (i guess) and seeing where they stand on this. Suprisingly no one really seemed to think it was as out there as the press and consumers seem to. That's not to say that anyone really fully supported it or spoke out against the lawsuit, but people were pretty rational about it and it seems that Epic very well may have broken some contract obligations to numerous developers with this engine.
That aside, what SK wants out of this is a little silly.