Right, a lot of these allegations would be fairly hollow, if it weren't for the emails the feds seem to have actually proving willful and knowledgeable actions by the execs to use infringing content to advance their business model. Otherwise, you could easily compare MegaUpload to Google/YouTube, which (inadvertently) pays some users money directly for ads on infringing content.

http://www.scribd.com/doc/78786408/Mega-Indictment It looks actually really, really, bad based on the evidence the federal prosecutors are presenting. As loud as the cry is about censorship, government being pawns of the MAFIAA, etc, it seems that MegaUpload crossed the line and brought this down on themselves.

http://www.fbi.gov/news/pressrel/press-releases/justice-department-charges-leaders-of-megaupload-with-widespread-online-copyright-infringement This is a bit more informative vs the dozen-odd news sites I've seen so far which do nothing to explain what really tipped the hand of the feds in the case of this file locker vs any other. Reading the official allegations though, most of them seem fairly weak.

http://arstechnica.com/tech-policy/news/2008/10/dodgy-digits-behind-the-war-on-piracy.ars A bit dated article, but should be relevant. Seeing as how the site and arrests went out today...before investigations Saw 11 has been downloaded 129202 times.