I don't play Morrowind, but I feel like I should throw in my two cents.
Although it doesn't sound like it from the article, but did our friend here email any of the creators in the first place before he made a compilation?
Second, did these mods have licenses or any sort of terms listed on their respective download sites? No? Then they obviously didn't think ahead (I also wonder how strong their legal ground would be here. Both sides are rather weak). I thought it was practically required to include license files with mods. Seriously, this is the internet. If you are worried about someone distributing/modifying your work, you should include a license (please note: I know someone will attempt to point out that this will never work out and people will ignore it [and then most likely give an example like the internet and pirating music or something]. I would like to state that the guy who made this package had GOOD intentions [at least from the facts we know], and would most likely respect those licenses before creating a package. If the mods he included DID have a license and it FORBID "remixing" then the fault is with him).
My other points:
* Really mod authors, really? I mean come on. This guy is helping you get more views out there. You provided these mods for the community. Get over yourselves. If you didn't want someone to bundle your mod, you better have made it clear in the first place.
* Putting a file in the zip as credits is a nice gesture but you should also put the credits on the website as well.
* Why exactly is he banned from the Bethesda forums? That makes no sense.
As a software developer myself, I feel like this issue is blown out of proportion. Given only the information posted here, it seems like the guy who bundled this was well within the DMCA fair use. I can understand the mod developers being angry because he hadn't contacted them. I would be angry too. I would probably contact him demanding an explanation of what he was thinking. But then again, I probably wouldn't have been affected because I would most probably include a license/terms that would forbid redistributing.
There is not enough information given to really choose a side completely. But tl;dr, I believe that given only the information here, it seems like mod developers are going a bit too far.
UPDATE:
So doing a bit more research this is what I found.
1. Tyler was banned from the Bethesda forums for flaming (from what I can tell, flaming was not used as an excuse to ban him, he was legitimately doing it), of which he posted emails of people trying to stop distribution of their mods.
2. The major player against him is a guy named Sean, who claims that by bundling, Tyler is plagiarizing. From my understanding, plagiarism is when you take part or all of a work and claim it as your own and/or without credit.
3. Rumor has it that the original package contained no credits document (bum bum bum). I cannot confirm this completely, but the original reddit posting has a link to a credits list (a rather long one).
As I stated before, there really isn't enough information on the subject, and because of this, it is difficult to draw a conclusion.