Straffo,
AFAIK only the clients code was protected, but nothing between the client and server -> no crime had been commit by the law.
Which seemingly resulted in the change of EULA by IEN and other companies to include also decrypting of the client<->server discussion as against the EULA.
When I heard first times of these warbirds hosts by third parties, there was legal side discussion all over and I do remember noticing the above change in EULAs.
However from what I've heard, the russians who made their host, has also messed up with the clients code.
I heard they had added a new plane(s), which surely isnt possible without messing up with the clients code.