When I send mix CD's full of copyrighted material via USPS to my friends, USPS is using those copyrighted works to make money and doing so without permission. Does that absolve the USPS of wrong-doing?

You're actually comitting a federal offense.

The USPS doesn't know and has no way of knowing the contents of your package, Google proudly proclaims how powerful it's search technology is.

USPS deliver the package as per your explicit instructions, Google allows all and sundry to view content on YouTube.

You pay USPS (once) to carry a package for you, Google make money by selling advertising, effectively making money everytime a clip is viewed on YouTube.

Googles' operation of YouTube is not overly dissimilar to the way in which television stations make money - the exception being that television stations have to pay for content to fill the gaps in their advertising schedules, Google are "re-broadcasting" copyright materials without a license.

The clips often suffer from the compression process, which presents Viacom's products in a less than satisfactory light with poor audio and video quality.

As lovely as Google and YouTube are, they are in the wrong, but hey it's America, if you don't like a law and you've got enough cash then you can just pay for a new one to be drafted - that's democracy 2.0!