It's ironic -- the "anonymization" technique of pixelating the image and blanking the names doesn't really work anymore: one can easily just search by the other attributes to find the people again, there is enough entropy in that data.
The whole point of the site (other than lulz) is to highlight the privacy problems of Facebook, they obviously aren't going to completely protect the people who show up in those searches. What the blurring does is prevents the top 3-4 people in the results at the time of the search from being unfairly highlighted, and it doesn't keep any historical record of the people should they take steps to remove themselves from these results.
I think the anonymization, while not perfect, is enough to be considered ethical.
That's true. I do consider it polite though not to display their names openly on the site. It gives these people a chance to change their preferences and hide from future searches for instance.
Interesting concept... showing courtesy for strangers you find in search results...