Yes, it is. Reporting on a demo's existence is one thing, and totally legitimate, but HOSTING IT is completely different. Yhey're not just reporting the news, they've become an active participant in the news, which if you know anything about journalism and news reporting is a big no-no.
This isn't CNN, you know, and the Medal Of Honor demo isn't the "War On Terrorism." Blue's News staff didn't sneak into the offices of EA, 2015, or some sort of magazine to steal this demo, nor did they call up EA and ask them how they felt about the demo being released early. That
would be "making news." Hosting a demo, in this electronic news medium, is something else altogether.
Just for kicks, here's the entirety of the legalese contained in the readme.txt file.
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INCIDENTAL OR CONSEQUENTIAL DAMAGES SO THE ABOVE LIMITATIONS
AND/OR EXCLUSIONS OF LIABILITY MAY NOT APPLY TO YOU. THIS WARRANTY
GIVES YOU SPECIFIC RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS
WHICH VARY FROM STATE TO STATE.
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No mention of anything 'distribution.'