You know, I think all this free content out there made a few things better.
Pay Sites now have to actually have content which includes good quality pictures, movies and stories. (This is great for paying customers)
Some people exagerate of course, but they are not a significant number, and they don't represent the vast majority of the webmasters out there.
Also, I would not underestimate revenues generated by sites like thehun for the entire industry. From his banners, I think he has like 70k+ clicks a day. Now add how many clicks to sponsors the 70 galleries he list everyday generates. This is more then what he sends himself with his own advertising.
You can't ingnore this out of the equation.
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