However, I will never buy the argument that it will tarnish you in the current scene. Why should I play nicey nice with someone who basically stole from me?
Well, you're mischaracterizing what I said. I didn't say be a sappy ass-kisser. I said, let them know you know it's wrong, and you're not afraid to say so. i.e., share the information with other musicians.
The part where I would question the impact to my reputation is when I think of lawyering up. In some cases, it's called for. In this case, it would be too extreme.
There are two guys around here who coached pee-wee basketball. Anyway, they got in a big row over scheduling or something and one of the guys wrote all kinds of letters to the editor of our small town paper, took out paid ads bashing the other guy, threatened legal action, and basically made an ass out of himself.
Did he have the right to do that? Sure. Was he in the right, and doing the right thing with his actions afterward? I'm sure in his mind he was on all counts. But all he did in
my mind was convince me that he's a doofus. All I took from it was, I don't care who's right, that guy's a dick. Most people I talked with said the same thing. To HIM, he was doing the right thing. To EVERYBODY ELSE, he's an ass.
If I heard that someone did what you suggested, I'd look at them as somewhat of a troublemaker simply because they took what I consider an overly aggressive response.
You don't have to be nice to earn respect and have integrity.
True, but if you're overly aggressive you may also earn the terms "problematic," "onerous," and severe."
(Notice I said "overly." Obviously, you pursue whatever measures are appropriate including legal action depending on the situation, not bend over and take anything someone dishes out.)