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Great read...
I think tube sites are just the next evolution, some allready mentioned that they are the tgp site follow up and I agree.
We own many legal tube sites ourselfs and for us they are very usefull for the network, not for the tube site itself or the sales from it. Tube sites have a very low bounce rate, therefor search engines love them and they get a good page rank in no time. We send traffic to the affiliates as a thank you for the content supplied, not so much for the money made from it.
Illigal sites will face penalties in the near future, and become a legal content site. Untill then there is not much you can do, besides spending money on lawyers to shut them down.
Just my 5 cents
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