It's too soon to blame this on Zugo, unless you know more than was stated in the article. As far as we know, they're just a custom toolbar distributor, like Conduit and many other companies. How many people away they are from the affiliate buying the ads, how many people away they are from the company paying that affiliate, and whether any terms and conditions in-between forbid tricking people into installs are all unknowns.
Zugo can certainly take some flack for having a toolbar without an uninstaller, and an FAQ URL that doesn't work. When something becomes purposely difficult to uninstall for end-users it crosses over into malware territory.
You're right - I mis-read the article as saying Zugo was the advertiser. My previous comment has been edited to make the same statement about Make-my-baby.com
