GNU GPL v2 Code – Can Rewritten Code in Another Language Change License?

That's an interesting question. Disclaimer: IANAL.

The quoted fragment means the BSD licensed code can be used in a project which is licensed GPL.

On the other hand, you're still the copyright holder of your code. The license of original code cannot be changed without your permission. Also BSD license explicitly requires:

• Redistributions of source code must retain the above copyright notice, this list of conditions and the following disclaimer.
• Redistributions in binary form must reproduce the above copyright notice, this list of conditions and the following disclaimer in the documentation and/or other materials provided with the distribution.

Thus BSD license cannot be stripped away from your code.

In order to actually be able to release combined code under GPL other author would have to make "significant contribution" to the code. It's vague what it exactly means, but usually should mean at least adding new significant feature, not just minor patch.

Similar situation: SFLC Completes Review of Atheros Wireless Driver for Linux, Releases Guide for Developers.

Related question on SO: https://stackoverflow.com/questions/821608/relicensing-a-bsd-library

It is perfectly all right to sell an "aggregrate" of closed-source and open-source software according to the GPL FAQ. If the company compiled a Linux, built their own program on top of it using only LGPL libraries, and sold the resulting product while publishing all GPL/LGPL sources with it, they are not violating the GPL.

The point here is: The GPL does not extend to programs simply running on the same computer and communicating/interacting with the closed-source program. An open-source window manager like BusyBox is of course allowed to manage closed-source windows. As a rule of thumb, the GPL reaches as far as the address space of the licensed code.