Hmm I don't undertand the shock from here. It's completly illegal, it's normal to take down a site like this. If they don't know where to host their shit... is their problem.
First of all, sites like megaupload, mediafire, etc... are in the same lump as youtube is in. They are PERFECTLY LEGAL. They are a 'file locker' type site that adheres to DMCA. There are thousands of perfectly legitimate uses for a file locker site, especially sending files that are too large to send through email.
If megaupload is brought down, sites like youtube and user generated content are in danger. Does anyone have that many employees to 'monitor' all the files being uploaded? Think about if you owned Youtube.
Youtube has 48 hours of video uploaded per minute. Thats per MINUTE. You would need ALOT of people to monitor youtube to see if it 'complies' with copyright, as well as local/country laws. That is why there are laws like DMCA, (safe harbor), and that is the reason why SOPA would not work.
So I think you are alittle misinformed my friend on the legality of megaupload. What they are doing is NOT illegal.
Is there pirated videos/files on megaupload? Sure there is, but there are on youtube as well. That is why DMCA exists. It will allow you to avoid liability for copyright infringement arising from acts of your users. Monitoring Uploads is Not Practical.
There is more to this story than just 'copyright'. Megaupload recently is in litigation with Universal. They are suing them because Megaupload had a viral video that came out with major artists supporting Megaupload, saying that they use it to send files. Apparently Universal didn't like it and did a DMCA takedown request with Youtube. After trying to figure out what happened, Youtube put the video back up, only to be taken down again. Megaupload decided they didnt want to get pushed around and sued them. Their response? Pressure the feds into arresting them.