That doesn't matter. He is making money (and by money I mean a fraction of a cent per link) off of his own installer.The installer is his work, not yours. He's not making money off of your work.
But it wouldn't exist without the things it installs.
No offence meant to XFlak, but very little of what ModMii can install is made by him. Yes he made the installer, but not a lot else (I know he contributed to d2x and stuff, but the majority of stuff he didn't really). He is also making money from a tool that downloads copyrighted code from Nintendo, which may be legally questionable, I dunno (I know it is freely available, that doesn't give the right to make money off of it). IMO, it would be OK if there were no ads, and people who donate didn't get anything for their donation (i.e. they still had the same program, so they weren't actually paying for something, they were just donating). Not sure if the DML team would agree here, but that's sort of the way I see it.