While I don't believe they should be held accountable for copyright responsibility of their users it looks a lot more like this case is based on the fact that they specifically designed the site to make money off copyrighted material. This includes failure to take down copyrighted material upon request by the copyright owners.
The bigger charges though I think are related to the money laundering and racketeering charges. These are outright illegal and the owners should be held accountable for this.
Everyone keeps trying to compare this with YouTube or other file sharing services when in fact the charges are much larger then just the copyright part of this case. This is the internet after all, not every site will operate within the rules of the law. I do think the site should be kept live until they have been found guilty though since the innocent until proven guilty part of our legal system seems to keep getting lost along the line.
I agree with pretty much everything your saying, except the site being kept live.
They have not siezed the site servers, only the domain name, Just like it is legal to seize assets, freeze bank accounts, and close businesses while they are being brought up on charges. If they are found innocent they can sue the government for loss of revenue.
Its not just a loss of revenue but loss of data. If you watch http://youtu.be/vuVy5BEpTfg it explains why keeping them up during the trial really should be allowed pretty well.
On the other hand, they keep saying the phrase "Mega Conspiracy" which just makes me laugh.
Seriously, at least come up with name that doesn't make it sound like a bloody tin-hat convention.
innocent until prove guilty, what world you living in, that hasnt been true since pretty much ever.
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