This is different. Steve Borock could grade very strictly, and as far as I know still knows how to do it. His standards prevented CGC from being stillborn as a joke, for which I and the rest of the slab-collecting hobby should be eternally grateful.
Unfortunately, it appears that he chose to compete with CGC by not grading as strictly, which really made no sense to me, because CGC's grading standards (which he set) are what made them legitimate in collectors' minds to start with. If he had graded on same standard (didn't have to be tighter) and competed by offering faster turnaround/better service, rather than competing on inflated grades, he could've offered some real competition. As the saying goes, you only get one chance to make a good first impression.