How, exactly, is Google supposed to know that the videos in the "full movie" search are, in fact, infringing on copyrights? You are looking at the results and making a judgement call (granted, a likely true call - but still a guess) - that is not something Google should be doing. That is well outside the realm of their responsibility. YouTube's copyright process is already *well* ahead of what anybody else offers - they not only promptly respond to DMCA complaints but also have the ContentID system which makes it super painless for copyright owners to have videos removed, monitored, or to collect a portion of the ad revenue from them: http://www.youtube.com/t/contentid
This is most certainly fair to rights holders and is far, far beyond what Google is legally required to do, and indeed is far, far beyond what anybody else is doing.
So yes, you should be modded -1 Flamebait as you are factually wrong on a number of key points. Google *doesn't* make "hundreds of millions on infringing material". Infringing materially typically *costs* them money as pirates don't usually opt to have ads shown, so Google is footing the server and bandwidth bills for nothing in return - but even still, 10,000+ views doesn't come remotely close to even $10k in revenue much less millions. Second, Google *does* let content owners get a part of the cut on infringing material. A third, most crucially, the system is incredibly easy to use as a rightsholder. Upload your video to ContentID, pick which option you want when an infringing video is found (remove, monitor, or ad split), and you're done. And finally, YouTube started as an independent web site, so clearly your claim that without lawyers they would have been shut down for "conspiracy to commit criminal copyright infringement" is hilariously wrong not to mention just plain stupid. Especially when the other side has even *more* lawyers than Google does, yet so far no battle has been waged in court.