As a commercial artist and design engineer in another industry, and an executive who has routinely hired commercial art and design firms, I'd have to say that while I believe monstaVision's approach has been clumsy and a bit ham-handed, the practice of submitting mockups and concept proposals and even concept or design prototypes on speculation is not at all unusual in other areas of commercial art and design.
The company I work for designs interior cockpit solutions for the luxury automotive industry, and faceplates and interfaces for the appliance and electronics industries. We are now a leader, to greater or lesser degree, in all of the markets in which we compete. But I remember how much time, money and other resources we had to spend to break into some markets, all on spec, with no guarantee of return. I also remember times when we, like The Skins Factory now, were a clear leader and innovator, and could more or less dictate terms. And now, as some of these markets have matured, and global competition has increased, we once again find ourselves spending millions of dollars annually on digital design proposals, design samples, mockups and concept prototypes, all done on spec as part of the bidding and nomination process.
As an executive with that company, I also am solicited, indeed inundated at times, by marketing and freelance design artists with samples, concepts and mockups, again, all done on spec with no guarantee of a return or any compensation at all for time and materials. We also, can and do, seek out other artists with a "name" and in those cases, the name artists are able to negotiate better terms, just as my company is now able to negotiate better terms for our products now that we are a leader in our market.
I'm not trying to say this is an apples to apples comparison - you skin software interfaces, we "skin" hardware. One of the main differences is that our industry is much more mature, and competition is much greater. Procedures and practices have evolved over time. But I'm old enough to have seen how similar ways of doing business transfer from industry to industry as markets mature and competition increases.
To Jesh and the others at The Skins Factory, I sincerely admire your work and you clearly deserve your success and the fruits thereof. Enjoy it while it lasts. If you can continue to be innovative and in tune with the market demand, you may well enjoy it for your lifetime. But as this industry matures, you may also find that you need to work a bit harder to stay ahead. I wish you well in any case.
To newer artists that don't enjoy the prestigious position TSF, DuoPixels, adni18, Pixtudio, and others have, keeping faith with your fellow artists in terms of ethics and standards is vital. But business is business, as TSF pointed out, and when you are trying to get started, and your reputation is not yet developed, sometimes you have to work under less desirable terms and conditions, and even take work from clients who make clumsy approaches or don't otherwise appeal to you.