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While youtube may be profiting from the ads, I wouldn't blame them per se.
Today while searching Youtube I came across an entire 2 hour movie ("DOA"), that proudly displayed a watermark of the person who copied and uploaded the movie.
What you tube should do is force users to properly register with them before they can upload any content, and properly hold responsible the thieves who are stealing the content in the first place. In fact, every tube site should do this. Sure its a lot more work and it would mean the death of many tube sites, but so what? It'll reduce the amount of stolen material found on these sites, and the sites who do things properly and legally will be the ones who prosper.
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