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Torrents, YouTube, embedded flash videos...it's all the same. Youtube is hosting copyright content and is making a killing from the traffic that is attracted through the material. They may not sell the content, but the content converts to traffic - traffic converts to CPM - CPM is making millions.
The there are torrent site, large traffic, and downloadable files...embedded videos, whether it's youtube or some porn forum that hosts content, like the guys over at xxxuploads.com (they just got hacked, hehe) if you have the right plug in, you can download anything embedded....
Whining about it is not going to change anything, where you sue someone, another is going to pop up, just go with the flow and use their conversion to your advantage.
We're getting hung up on things that are not going to change, just put on your thinking caps and be smart about using them to your advantage.
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