It's too bad they did it backwards.
1. Infringe copyright
2. Make money off #1 (the article said as much, "We've tried this model and it works!")
3. Discover that you're likely to get caught.
4. Think of ways to get industry approval ("Hey you want a piece of this pie?") while making money hand over fist.
Amazon is at least starting out by recognizing copyright and enforcing it.
Besides, the music industry already has Apple, Amazon, and others in the selling business, and youtube and others in the "pay for play" business.
They don't need a piece of megaupload's pie - it's much more profitable long term to shut them down, force customers into existing channels, and use them as an example for the other sharing sites.