You're right. It's a huge step from "not legal" to "glaringly illegal." My apologies.Where, exactly, did you get "glaringly illegal" out of the statement "not exactly legal?"
And did you ready the article? Because that answers your question.
Actually, the only thing that article proves is that Project Free TV itself isn't illegal. Which probably explains why it hasn't been shut down. Streaming sites can be considered illegal, but PFTV doesn't stream anything. It provides links to where people can view content. That's a very different critter.