Is this true of all live cd's? For instance, dyne:bolic?
I'm not much of a purist (or puritan either) I think if it helps people feel comfortable with linux it is doing the open source community some good by giving it a larger audience.
The other question I have is are the developers willing to open the source?
And last but not least what is the intent in asking this question-in this provocative way.

"Such, boot live cd - close code, accroding to GNL, "Live CD Knoppix - is illegal, incorrect."

Knoppix is very popular and such popularity will, I guess, cause envy.