What exactly IS the copyrighted material?
The names of Classes?
The names of Races?
The names of Special Abilities?
You could create a class entirely based on a "Copyrighted" class, but change the name of everything and it will have the same functionality... (i.e. instead of 'Lay on Hands', call it 'Healing Index') and absolutly nothing that would be copyrighted. That is one solution to all this brou-haha (French expression, which would mean something like "a storm in a glass of water" - not very translatable, sorry - which is what I consider all this talk about copyrights to be)
The Sheet is not meant to 'replace' the source material: On the contrary, references (i.e. Page Numbers) to source material is often added by those who design classes so the user can check how to use his features and abilities correctly. Descriptions are short, and usable as a reminder, to someone who has read the complete ruling... Check the SpellLists and you'll see the many spells that refer to the Player's Handbook... But the Sheet IS meant to significantly reduce the time needed to create and maintain a character. But as I said, it won't tell you all the details you need to know to effectively PLAY that character in a game session.
Furthermore, The Sheet is a Tool which will HELP people manage the complex rules of the game, and will help prevent them from getting discouraged by them (Version 8, which will implement the stacking rules, will certainly be even more helpful along those lines) - For example, I received a comment from someone to that exact effect - She said "I honestly believe if I hadn't had this sheet I wouldn't be playing any more". (As experienced players/GMs, we tend to forget how complex the rules really are - and that is even more apparent in older folks that are just starting on the game... or even worse if you have a player with no RPG experience and add him/her in a group of people who have been playing 20+ years !)
So it is my [firm] belief that the Sheet is actually PROMOTING the game of D&D3.5 to the community. AND that translates directly into more business for Wizards of the Coast. Perhaps this explains why they do not have a problem with all of this? In anycase, they know I exist since we have exchanged emails on Business talks. I dream of the Day the EYE of WotC is on me!! (I'll make sure to wear the ring

)
Peace !
RiTz21