That Conde Nast article's a bit over a year old (it got posted on Huffington post a few days ago and got a bit of attention again; interesting rereading it now). Its funny how a year later nothing's changed; its gotten worse.
Vivid dropped its lawsuit against AEBN (very chicken-shit move) and Free Speech Coalition sold the entire side of the business that cares about copyright by naming AEBN's head "Man of the Year." The only real credible plan I've heard in the last year about doing something to stop them is Greg Picconelli's comments on XBIZ that the new 2257 regulations could be used to force them to comply and cripple their business structure.
I'm baffled why more and more companies are joining with free tube sites thinking they might sell memberships or conversions; its nothing but a race to the bottom devaluing their own content. The tube sites are really the new mafia of porn: they steal some company's content, tell them they have no power to stop them with phantom servers and companies all over the world, then tell the company if they form some advertising partnership they'll have control of their OWN fucking content. Totally unreal.