Quote: "I think thats a bunch of balogna. How would they prove the level is made in strictly valve hammer editor? I dunno you might be right but that makes no sense whatsoever."
Yes, they cannot prove it and, at the end of the day you can use it for whatever. But it's the same thing than using a pirate copy of Photoshop to do a texture: you can't say it was produced illegally by looking at the jpeg...
... But, if Valve were to raid a developer's office and find no level editor in the developer's machines other than Hammer, they _could_ sue the dev house for breaking the usage agreement...
Same thing as using GPL code in a closed commercial product, etc etc
I have vague plans for World Domination