The news about the massive banfest against Woodbury members has been getting major discussion over at SLUniverse and on Prok's blog, and it turns out what did them in was that they decided to grief the wrong griefers. Allegedly, Tizzy Teardrop put a bounty on taking down Emerald's beloved CDS, which got the ball rolling. But what most likely pushed the Emerald devs into throwing WU under the bus was the recent video made by Cam Scientist, a Woodbury member who publicly outed the fact that Fractured Crystal should not be anywhere near SL according to the TOS, starting from the first time he got an account banned and also that Onyx is a griefer/copybot viewer.
This, of course, embarrassed the Emerald devs and even put a few holes in their perceived reputation. So they obviously decided to offer up Woodbury as a condition(or leverage) to get on the third-party viewer directory. It's definitely no coincidence both events happened nearly on the same day.
My personal opinion on this is, "I don't really care". I have no sympathy whatsoever for the banned Woodbury griefers, and this doesn't change my opinion of the Emerald devs one bit. It's just a classic case of no honor amongst thieves.