I don't disagree with you, but its hard to deny that MegaUpload was full of copyrighted material.

I always got the impression they were complying with the law in the most minimal sense, but had no real interest in preventing copyrighted works from being hosted on their site.

In some ways MegaUpload reminds me of YouTube. Its hard to deny that they got big by providing access to copyrighted material, but have since become a legitimate service for sharing legal works.