If every government bureaucrat (not to speak of those from the MPAA and RIAA) can close down a site with hundreds of thousands of users for a few days because of alleged bad behavior by one of those users we are in deep trouble.
Look, suppose somebody committed telephone fraud in the State of North Dakota. Would that justify shutting down all telephone service in North Dakota while the fraud was investigated? How well would the economy function if we allowed this sort of thing?