I find this behavior quite appalling. Not giving credit is not only dishonest, but shows complete lack of character. The fact that Chris Hughes runs his blog under spazout.com is just another sign of his moral stance.
I can see why you would feel that way about the phrase "spaz out", but just to be clear: I don't think that's a common view. Saying "spaz out" is not commonly considered politically incorrect, at least as far as I know; I've literally never heard that argument before.
(I'm fairly neutral on the issue at hand, btw; I didn't know of Chris Hughes or the software he used before this incident.)
Edit: to clarify why I take offense with 'spaz out', I consider it a slur towards people with cerebral palsy. See also http://en.wikipedia.org/wiki/Spastic and http://en.wikipedia.org/wiki/Spasticus_(Autisticus)