Third: Any company hates competition, Konami is not unique to it. However, Konami isn't serious on blanking out all competition that uses 4 panels, music and rhythm based gameplay. They only sued ITG because they infringed on their IP rights. If Konami were dead serious they would go after iDance, Stepmania, any Playstation 2 game that uses 4 panels, etc. But they only went after ITG, because, once again ITG infringed in their IP.
This is wrong. Konami can't really "sue" Stepmania due to the fact that it's freeware. The software itself is not generating revenue off a pre-existing patent (which is what ITG basically did). And furthermore the game is essentially free advertising for Konami, similar to how Frets On Fire is for the Guitar Hero/Rock Band series. In retrospect, Stepmania has been a pretty big driving force for getting DDR out there to people.
While it remains to be seen with what happens with iDance (if/when it is released), the fact that its developed over in Europe means that Konami's US Patents don't apply over there, creating a supposed loophole that remains to be seen if it'll work.
However, Konami did sue Madcatz for that Dance Factory game on the PS2.
Fourth: There is no proof that Supernova only exists because of ITG. If that were the case, then as soon as the case was settled, Konami would have abandoned the arcade market for DDR again, but instead they came out with Supernova 2 and DDR X. There is no proof that Extreme was supposed to be the last mix. The decals on an official Extreme machine said "we're starting over", as in, they were taking a break and coming back later on. It just happened to be several years later.
There's no concrete proof for either side of the argument, as there was no proof that Konami intended to take a 4 year break from arcade DDR and then start back up with Supernova, even though there are several things that strongly suggest that Konami intended for Extreme to be the final AC version of DDR, including a dwindling interest in Japan and several references in the JP CS version of Extreme. ITG just showed Konami that there still was a very strong interest in arrow stomping games in America, to the point where ITG2 dedicabs became the top selling and top money making machines in the US. (There was some arcade magazine that had this listed, wish I could find a link though). Konami simply saw this opportunity to restart DDR AC stuff and formally release it in the US.
Furthermore, instead of signing an anonymous online petition of a game that I guarantee 99.7% of you have not even played yet, you're better off voicing your complaints and concerns to Konami or Betson directly. I know DukAmok has said he's fine with people forwarding their complaints directly to him, so feel free to do so (ryaniyengar@gmail.com)