There are two things going on here. 1. Generating domains that match exact search terms is very common and can be quite effective. This is not 'bad' in google

There are two things going on here. 1. Generating domains that match exact search terms is very common and can be quite effective. This is not 'bad' in google ethics - think of how there is no search bar in chrome - when i type 'hacker news' into chrome, hackernews.com is #3; the line between a search and almost typing in an exact domain name makes these domains valuable, and uneducated users who don't know the difference between a search and a domain mean this won't change anytime soon. 2. Mahalo could be auto-generating content that should be penalized because it is duplicate or spammy. This is, within the terms of the googleverse, 'bad' and can be penalized. However it's not clear that all of those sites are exactly the same (i didn't click through each one) - they may be different enough but just share a similar URL structure, which if the content is different, is not really an issue.