Probably because they use an automated tool for generating ads, saw this was a "related keyword" and stuffed the search query into the opening line of the ad so it would appear more relevant.
It seems they would have had to purposely put "MeetingBurner" as one of the keywords to be stuffed into the ad. If they truly are just that stupid then it speaks as much about them than if they were being malicious. o_0 It sure does look shady to me.
Not necessarily. You can do wildcards in text ads where the matching term gets inserted. Not saying that's what they did, but it definitely doesn't have to be done by hand.
When you put the wildcards (DKI), it matches the keyword from your list of keywords, not the search query. So you'd have to put MeetingBurner on a list of keywords to have it show up here (which as others said, could be due to the Google Keyword Suggestion Tool)
"Never attribute to malice that which is adequately explained by stupidity." - Hanlon's Razor http://en.wikipedia.org/wiki/Hanlons_razor