I think it's overzealous still. It's saying in big bold letters that something is wrong and it's not. It's also inferring that lula is somehow at fault, which it's not. Warnings are fine and all, but I think that giving a blocking warning on a site that has a link to another site (or I guess possibly a linked image or two) that may have some malware on it is over the top. If they factored in things like the history of the other site, the length of time the malware was on it and it all looked as if the other site was a deliberately malicious site it might be different, but in this case it's obviously something that was transient and unintentional on the other site as well.
Also there is a big difference between having a small link that says a site might be harmful to your computer, which by the way is only done directly on the site with the malware and not any sites linking to it, and having a big blocking popup warning are very different things.
We'll have to agree to disagree on this one.