I run a small filedump ( http://files.ww.com/ ) as a service for the general public and from what I can see by looking at the filenames alone (and contrary to the German court I do think they say something about the content) I'd say well over 90% is legit.
I do have a search facility on there, that's something rapidshare does not have, I think I only got away with that because it's small enough to be under the radar.
For sure there are copyrighted files in there, and I do not allow the 'rar' format (because it was universally used to upload full length movies) but the majority are small files, single images, word documents or cad files, and most people are nice enough to remove the files when they're done with them.
It was built as a convenience to get around email attachment limitations.
edit: >The greatest part is that the court thinks distributing illegal content isn't the main part of thier operation therefor they are allowed to continue the service in general.
Where did you read that?