This Megaupload issue is something I have watched unfold, and I really can't see how it is still going, considering the various flubs with law enforcement.
Of particular concern to myself is how this could potentially effect my business, an ISP, in the future, should this be seen through the courts. My business allows storage space for all our customers, I don't know what is being stored, nor do I control the content, just the space they use. Now should MegaUpload in the end be held responsible for their users content, then that easily could set a presidence for the MPAA to go after anyone else that provides file storage services. We already deal with the RIAA/MPAA and various other entities that send us letters because a customer has been caught pirating content. Forcing us to dedicate the staff to contacting these people, explaining to them what they did, why it was wrong, and to stop. Then having to respond via a legal form to the entity that contacted us letting them know we followed the legal procedures, and can no longer be held responsible.
Was MegaUpload an extreme case? Yes. But there were still a large number of people using it for legitimate purposes that lost access to that data, and for them to be grouped together with the rest is simply wrong. There is not a single entity on this planet that should be able to pull down an entire service, effecting those using it legally. It would be something like the DEA going into an entire neighborhood and kicking in every door, because they know some of them are holding controlled substances. They don't know which ones, just that in that particular neighborhood there are some. There just isn't any justification for lumping legally abiding individuals in with the criminals, and causing loss or harm to them.