I like to look at some of the old articles of Newgrounds' history sometimes. I hear of old issues of Tom's "questionable material" on the site. Lawyers of big companies could easily find stuff on the net that they thought should be removed. Parents worried more over these violent games that were popping up on the internet, and thought they should be removed as well. In 1999, most people could easily find and pick on this questionable material.
Fast forward 8 years,
Now, much bigger sites like Youtube, Myspace, ect. have started popping up. Much bigger issues for people on the internet, like stalkers, have emerged for people to focus on. Nowadays, most of the material on Newgrounds would probably be deemed questionable, back in the late nineties. But with these bigger issues out there, many people don't focus on petty things like violent games and (most of the time)copyright infringements.
I'm not saying we should focus on these issues more, I just thought it was kinda interesting.
Meebs
I agree, although it's also because at this point, they realize they can't really prevent small stuff like this from happening, the stuff is just going to surface up some other way, and it is not hard. But you are right, they do have bigger problems to deal with so why bother.