Aside from the fact that they're not supposed to sell a RetroPie image, their showcasing of RetroPie is the most troubling part; someone who doesn't know what's going on can look at that and assume that the RetroPie team is behind it all.
I've recently heard of a script that downloads roms from an exclusive web server once the Pi is booted and is connected to the internet, so they're technically not selling roms, but that still can't be legal.
Also, the sad part is there's not much that anyone can do about these sales; if you report them and they get shut down, they just come back under a different name. The only thing that I can suggest is to encourage people to build their own setups instead of buying them. People who aren't tech-savvy tend to be intimidated at the thought of putting one together, and they need to know that this is a platform for beginners to learn computing; it's not some impossible piece of tech that they can't wrap their heads around.