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I'd also like to give another analogy here too.
Brad Mitchell was talking about removing his service mojohost of people running illegal tubes. He did this because he has character and believes in ethics.
Well some time later he made an announcement here retracting that statement that they would not actively seek those running illegal tubes, the reason? Because people figured they'd just take there business elsewhere and unlike Brad most people aren't above making a buck regardless of how it's made. He couldn't help it, it's just the way it is.
So goes with filehosts. Rapidshare is riding a lesser line by only allowing rewards of free accounts to people who get sufficient downloads of their content. If one filehosts offers more rewards then uploaders leap to them. It's all a game of leapfrog and who can remain resilient to shutting down. If a company says they actively seek uploaders who upload copyrighted content and deletes there account, they're going out of business very soon.
Hopefully this makes some sense.
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