My position is that it's simpler to assume that Bing were spying on Bing users regardless of what page they were on, a side-effect of which is that Google had a lot of influence over-all, especially noticeable on 'long tail' queries.
"How exactly did Bing violate Google's terms". I don't know.
"Who "owns" the content the user "created" by typing in a search term and clicking a link?" Good question, I don't think there can be a definitive answer to this. Google can make a decent case that they own it (just like they own the directions given between two points on google maps, it's a consequence of their algorithm). But I think that's missing the point that, if I'm right, Bing weren't just targeting Google, they were targeting everyone.
Obvious sarcastic reply: "Oh it's all ok, Bing were spying on everyone guys, not just Google users, yay!" but that neatly brushes under the carpet the fact that everyone who runs a website spies on their users to some extent. This underpins the entire business model of most web businesses, especially search.