Both Ziv and Shawn Berkowitz are scraping heavily. I spoke on the phone with Shawns lead SEO guy when this all started (it was almost two years ago when they co-developed the program it actually started out as an SEO tool that they hacked and modified into the automated scraper, page generator we see now.
I am also told that a small group is registering up to 1 million expired/expring domains at a time using an automated script that tracks the age, back links, PR and DMOZ placement before adding desired candidates to the list for automated ordering ironically they dont even KEEP 95% of the domains, they just control them for several months until the credit card charges are reversed on the ones they have already had banned from the engines! Its quite the set up.