Matt you've made some really good points.

It's important to remember that sites like dailymotion and rapidshare basically sell a "membership" for stolen content they host.

I've yet to see a rapidshare or dailymotion upload account deleted for repeated copyright violations of uploaded materia.

Hosts and ISP's are being lax. Here in Australia they've been discussing a 3 strikes you're out for surfers who download stolen content from file sharing sites. After the third strike your internet is disconnected. How do you feel about that?