Pulling the download isn't sufficient if it has already been downloaded - either they have to offer the source to everyone who downloaded, or they have infringed copyright by this distribution and can be justifiably sued for that.
However, this article implies that nobody really cares about them releasing the source, as it seems that it does not have any interesting improvements.
Yes, but they need to provide the code under the same GPL license, so in practice it would be available to everyone in the world as long as a single person who downloaded it wants to share it futher.