jayeff, one of the things that many sponsors have forgotten is that DMCA pretty much extends to everyone in the tree of copyright violation, including those that fund and profit from it. DMCA is a "prove yourself innocent" sort of situation, and many sponsors (especially the ones who provide Iframe ads) run the risk of getting papered when a copyright violator runs a site like this. Most people complaining keep it to the site itself and it's host, but the monetization of the size is a key component to the ongoing violation, so the companies paying for this ad space and providing the ad content on the fly are potentially "partners in crime", and risk the issues that come down this way.
I don't think too many people have gone down this path yet, but I suspect someone will soon and it will get ugly
Alex