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Aside from the assumed copying. I think the biggest deal players had, was that the description on steam was not clean cut, and left open the fact that the game was not a polished finished product... They listed certain aspects of the game that are not yet in existence in play. I think this coupled with Serg's previous failures in the industry brought alot of concern to steam staff, along with some of the purchasers.
I like the game, but I can't say that I like Serg or his methods...
It will be interesting to see who wins out between Warz and the Dayz standalone when it's all said and done... I will say that if Dayz had better graphics, and a less glitchy UI and AI, I don't think Warz would have made it this far.
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