What's not legitimate about a poker site with fair games, speedy withdrawals, 100% solvency, and a policy of promptly returning all player balances when legal action forces them to shut down? I've played on a lot of sites, and SealsWithClubs was more legitimate than any poker room not named PokerStars or SWCPoker.
Micon encouraged rampant collusion and showed absolutely no remorse for this. Most likely he was getting a cut from the colluders and thats why he fought implementation of a (real) collusion detection system with tooth and nail.
I think the problem was relating to the fact that the collusion detection system wasn't strong enough, and even if they blocked or froze accounts with funds, they never distributed it to other players in the pot or the table. But its extremely hard to detect collusion at times, and specially with the possibility of people using 2 browsers or TOR, it can make it hard for them to detect collusion.