Its interesting reading this thread from a noobs point of view. Without throwing any speculation out there as too who was wrong or right, its seems there are 2 *main* opinions: Break a rule, do nothing, dont tell and Report everything.
Interestingly enough, I was reading through some ATSB (aussie transport safety bureau) reports recently, and found them incredibly useful as a learner. From what I have been told, the idea is to report everything so incidents can become a useful learning tool. I have taken a great deal of information out of reading the reports myself, and some are very minor.
So help me understand here, if the OP was experienced, and thought there was a violation of air law, then my understanding is he/she should of reported it. If indeed the pilot was operating within the bounds of the law, nothing would come of it. If on the other hand, we find out that there was a problem, we could all learn from it. Isn't that the idea? OR is the reality of the situation actually a lot different?