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If the world is a world is laws, then the law demands infringement and evidence of those videos as of 3/28/2007 eventually be looked into.
I think this is a problem that revolves around the illusion one can become an icon, famous or popular on the Internet with millions of fans, and just about get away with murder and stomp over laws, legal protections and principles that make the world under those principles as much safer, happier, wealthier place...... I think these business approaches Google uses are very bad influence to anyone considering copy cat approaches. Not to mention it is wrong, illegal and criminal inspiring. Young business people growing up and the citizens which use Google stuff out there will remember, will see, and will be negatively influenced. Even if no further actions are taken, the neative influence is the cancer out there. That cancer can grow or be removed based on the actions CEO's like Eric and decision makers like Larry take. I think if the Government was telling me to stop today, or change my behavior on something related to business activities I would listen instead of 'pushing back'.
Hopefully the Viacom suit will make them understand. I am sure it will not be long before someone in the government notices those videos out there and sets the example of what happens when you do that. I am sure Viacom would much rather be able to choose when, how and if they will distribute movies like those they own on peekvid.com stored on Google Inc. property.