Indeed, when a site built around (partially) illegal content being shared, it's OK with me if they earn just enough not to lose money on operating the site. However, I do not believe you should profit off the content of others.
"I do not believe you should profit off the content of others."
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-.
There is a notion that "at some scale, significant quantitative differences are qualitative differences". This drives a lot of legislation around misdemeanors vs felonies and regulations that only apply to businesses/operations of a certain size.
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.
You might want to see my post below (or above, if the votes move it around). I don't have any issues with distribution as a business model, but essentially due to ideological reasons, I don't believe it should be primarily focused on illegal content, if profit is to be made.
Am I being downvoted because people think you should be able to earn money on pirated content, or because you think they should operate such sites at a loss (if at all)?
I'd think it might be the line "However, I do not believe you should profit off the content of others.". That's a blanket statement which probably has been misinterpreted as you being against any form of distributor or reseller business model.
Oh, I see. Thank you for pointing that out to me. My intention was to say that I do not believe that you should create a business-model around earning money on only pirated content. Helping artists getting their name and songs out there is a good thing, but without their approval I don't think you should profit off it.