*EDIT
More like a series of cases, actually. German courts seem much more level headed than their US couterparts. Details here: http://en.wikipedia.org/wiki/RapidShare#Legal_issues
This is the problem. Distribution is a perfectly legitimate business model, as is hosting. Think, I dunno, Youtube? They don't generate any content; should they not be allowed to make a profit?
Your stance is just strange. Megaupload can have revenue from piracy, just not too much? Once revenue from their illegal content passes operating expenses, they should stop making money off it? I don't understand what you want such a business to actually -do-.
Personal sharing vs mass piracy is a major example. Usually the boundary is drawn at money changing hands, but other boundary lines could be debated.
No, they were Hong Kong based. Rapidshare (Switzerland/Germany) has already been sued there, and won, so their (current) business model, for the time being, is not accessible for american "shock and awe" justice.
Where do you see it as Swiss?