"Snitching"? Seriously? What are you, a criminal?
FC jumped the gun, assuming he/she actually sent it in and isn't just trying to scare the OP. And the letter has pre-schadenfreude written all over it. But the rush to condemn the OP rather than inform and persuade is jumping the gun as well. This could have played out without incident and drama if you guys had simply cited the ED contract and argued why paying the application fee at other schools does not entitle one to a decision given that contract, and pointed out that schools trade enough information to put the OP in danger of being recognized as violating that contract. Then you put the moral cherry on top by explaining how violating the contract negatively affects others.
Rushing to condemn and creating drama just wastes everybody's time. You might have succeeded in scaring the OP into compliance, but you'll only have made him/her more belligerent, while needlessly attracting a crowd chanting "OMG, what a retarded douche!"
I think people would have done exactly as you suggested if the OP hadn't acted with such incredible douchebaggery and asshattedness.
First, only ironic derogatory use of "douche" is worthy, generally in-person and among friends. Non-ironic derogatory use of "douche," especially on the Internet, merely signals one's membership in the category.
People did respond seriously at first, with constructive reasons for why he should withdraw. He responded with basically, "I don't care, I just want to know if I'll get in trouble".
Sure, but do you think he's more likely to come around if people start calling him an "asshole" (5th reply, 6 minutes in), lacking in integrity (6th reply), and "so self-entitled" (7th)? Have the rhetorical reserves really been exhausted by that point?
The OP justifies the possibility of violating the contract on the grounds that he paid for the app fees and is therefore entitled to the service of having it reviewed, regardless of what the contract says. It's on the basis of this justification that he wants to know if he'll get caught. This justification was not specifically addressed before people started calling him an asshole, etc. Other considerations were raised, yes, but the OP clearly believes the obligation to perform a service already paid for is overriding. Does that mean he's indifferent to those other considerations? No. And without evidence of such, condemnations of his character are premature, and counterproductive to achieving the best possible outcomes.
Ummm... Thank you. You can step down now counselor.