I realise that people definitely confuse the two programs, but as a long-time user of SpyBot I didn't have them confused. I'm sure SpyBot detects spyware that SpywareBot doesn't, but the opposite is also true, they detect different things.
All I know is that even though SpywareBot is capitalizing on the SpyBot name, which I don't take lightly, it seems to me as if they also happen to make a program which is good and doesn't fit the category of spyware at all.
It also seems slightly counter-intuitive that SpyBot would tell computer users it's spyware as a protest against SpywareBot being mistaken for SpyBot, because obviously if a user has both programs on their computer they are already aware that they are two different programs.
It's not a big deal really, I only used SpywareBot to remove a single piece of spyware that slipped through the cracks when I changed firewalls (IE7 is so freakin' useless on it's own! I was only without a firewall for 10 minutes! :p) and now it's deleted anyway, but I think it's pretty underhanded and wrong to pick it up as spyware.
SpyBot's purpose is to detect spyware, not software made by dishonest/sneaky companies who don't make spyware. If that was it's purpose then why doesn't it detect Windows XP itself? :p
It's dishonest to call a program spyware just because they company are assholes and are capitalizing off your hard-earned name is all I'm trying to say, maybe come up with a different detection or popup window that says "this program isn't spyware but we think you should delete it anyway" or something like that, I dunno