I'm new here, so I'm really not trying to get into a flamewar or anything ridiculous like that, but eliminating competition IS business. The industrialization of the world, the same industrialization that created the opportunity for the invention of the tools that we're all benefiting from right now, is a by-product of the elimination of competition. It's economic natural selection, or as Herb Spencer put it, "survival of the fittest."
Let me put a similar, but different, situation into context:
Let's say that you owned an actual business selling tacos which had an actual storefront on an actual street somewhere in reality. Let's say that, for example, a competitor moved in right down the street, used a name very similar to yours, and was selling an inferior product at a cheaper price. That's business and the market is the market and you have to let the consumers decide who gets their money.
However, let's say that one day you're walking around town and previously stated competitor's backdoor is open and you notice that his employees are handling raw meat with their bare hands. Low and behold one of them even takes some meat out of a package and tosses the package outside of the building. You mosey on up to the package and notice that the label says the meat has expired.
Do you play fair and wait until someone gets sick or do you benefit yourself and the community by dropping a dime on those sloppy taco makers?
Also, if you aren't "breaking any rules" you aren't risking getting in trouble with G. If you do get banned, you can fix your site and get re-indexed. It's all about leveling the playing field.