Draw your Character

[Nekomataya]

I don't think anyone cares if you trace. Lots of people trace. The problem is making money off of it.

I partially agree. Tracing is fine, it's a way to learn drawing and develop your own style.
However, going around and making people think the art is yours is not okay, even if you're not making money with it.

I would have been willing to change my mind about a trace or two, but not after the person actually said "I've never traced anything!" when they obviously have.