Funny that in the beginning, CinEx's own white paper argued they didn't have to support lossless audio because Cinavia messed it up too badly. Now, they're attacking SlySoft & Elby for downmixing to AC3; yet I find nothing to indicate CinEx supports lossless output itself, even in its "HD" product. It's been made clear here why lossless audio can't be supported right now: There are no open-source encoders for TrueHD or DTS-HD MA, and raw multichannel LPCM takes up too much space. (I've argued for DTS support myself, but that's strictly about what many believe is better lossy output.)
Also, their blog post uses the necessary steps for properly removing Cinavia, as has been discussed endlessly here (including by myself) for years -- decode audio, remove watermark from LPCM stream, re-encode audio -- to suggest that CloneBD, not AnyDVD HD, actually removes the watermark. Of course, we know it was implemented as a cooperative process: CloneBD does the decoding & re-encoding, but the watermark removal code is in AnyDVD HD. I'm sure this was done for legal reasons, since Elby is subject to a DMCA-like legal regime in Switzerland (unlike SlySoft in Antigua).
And if any actual open-source code was used, SlySoft & Elby know how to handle it; CloneBD & CloneDVD mobile both disclose their use of open-source code explicitly, while ReClock is itself an open-source project. I certainly believe James' denial more than anything CinEx says.
CinEx may be fearful not only of lost sales (and Hollywood closing off access to Cinavia-free audio for its database), but also of possible legal attacks that could shut it down. It claimed when it finally launched (edit: after legal action by Sony that it failed to disclose) that German law did not treat Cinavia as encryption, but that has always sounded questionable to me. Cinavia isn't the same kind of cryptography as AACS, etc.; but it uses steganography, which is a form of cryptography. Elby was founded in Germany, but moved to Switzerland way back when it still owned CloneCD specifically to avoid Germany's DMCA-like laws. (When Switzerland passed its own DMCA-like laws, it sold the questionable programs to SlySoft.) I suspect CinEx is vulnerable to the right legal attack, much as DVDFab was; SlySoft & Elby are far better protected legally, with Elby sticking to non-cryptography code (plausible deniability, anyone?) while SlySoft's cryptography is protected by Antiguan law.
Bottom line: CinEx should be thankful that for now, its Cinavia solution still appears to work better than SlySoft's (though I can't say from personal experience). I'm sure that will change, however...