FlightAware failed to understand the situation and acted truly foolishly. Kalshi did not use the airline's trademark for commercial purposes, meaning it did not sell any services under it. The airline's name itself is publicly available information. If we reason and follow this logic, then the media is also not allowed to report on airline flights or mention the names of aircraft, which are part of the brand and part of the property of airlines or aircraft manufacturers.
I don't think FlightAware was acting "truly foolishly". This was perhaps a kind of a final resort after their repeated warnings fell on deaf ears.
And while the specific markets which dragged their brand name didn't make much money, I guess the way it was used could be considered commercial purposes. Kalshi wasn't just reporting or citing data; they were selling contracts that would be settled by the official information released by FlightAware. At the very least, they should've informed FlightAware that their brand and information would be used for settling
bets.
The fact that Kalshi removed FlightAware's name from their site right away is obviously an admission that they were the ones acting "truly foolishly".