They would be really stupid. As long as you have that original thread link and you have already tried to submit it as a PSD you can just submit a DCMA straight away and get it removed and blocked if they try to upload it on their own.
P.s. for what it is worth the design is nice – its not really suitable for PSD but coded and with some tidying up around the typography you should be good to go.
Unless you own all the images and icons then they need to come out of the downloadable version and replaced with placeholders. Obviously you can leave them for the demo purpose (remember to credit original authors where necessary).
On a less positive note I think you are a long way off with the file and doubt it would get through without a ton of work. Typography needs a load of work, footer needs rethinking, there is little hierarchy, it is not pixel perfect enough for PSD here and needs something different to it. As it stands it is too basic and unoriginal.
Best answers will come from the author http://theme.co/x/member/wp-login.php?action=register&envato_item_id=5871901 but sounds doable. Good luck
Not true, the quote from their FAQ:
Currently, the single and multi-developer commercial licenses cover the resale of MixItUp in third-party premium/commercial themes or plugins.
You are right:
“Selling commercial themes or plugins that include MixItUp
Currently, the single and multi-developer commercial licenses cover the resale of MixItUp in third-party premium/commercial themes or plugins. If there are multiple developers working on your theme or plugin then you will require the multi-developer license, otherwise the single-developer license will suffice. Users of your theme or plugin must abide by the restrictions as stated in the license terms. License holders may develop multiple themes and plugins under the same license.”
In that template the author had to have permission form the owner. Just about ANY content about cities etc (especially that worth having on a site) is going to be copyrighted and require licenses and permissions.
You can try the major stock footage and image websites and might find something there but again make sure you buy the right license to use it if it is for a commercial site.