THE purpose of me running localarcade is to preserve the art... so much of it gets destroyed... it's such a shame. Like mame, there are side benefits to my attempts at preservation, however.
Unfortunately, the more obvious the bootlegging is, the more likelihood that I will eventually be forced to take stuff down, and the more likely it is that I will get sued. If any legit organization ever asked me to take stuff down I would.. in a heartbeat, but asking nicely won't necessarily be someone's first course of action.
I generally try to stay under the radar, I try not to encourage discussion of localarcade in terms of legalities. And I do my best not to encourage widescale art profiteering. For instance, I only have a link to mamemarquees as a courtesy, because Scott has been so good to so many users here.... I don't get paid for it. He was good to us before localarcade even existed. Anyway, someone always brings it up the tough issues though, and forces me to come out of the woodwork and try to legitimize my project. I don't know that I fully can, I just know that I feel better knowing that I might be helping to preserve the roots of an interesting and unique art movement. The game companies consider the stuff assets... I consider it art, something bigger than their corporate interests... something that they never will.
I have mixed feelings about my own site. I think about taking it offline some times. The more I have to talk about it, the more I feel like taking it down. Really, it was sort of just a BYOAC friends helping friends site... now it reaches across the globe... about 750,000 visits, 1300 registered members. It's gotten a little out of hand.
That being said... we work hard to preserve the stuff. Someone else works hard to pervert our aims. That's a pretty common thread throughout this entire hobby. Hypocrisy kind of goes hand in hand with the emulation world... and I don't see that changing any time soon.