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Here is a google cache of a video from their site
http://72.14.253.104/search?q=cache:0YA4Gsd9Ei4...
Those guys simply don't care about copyright. Not good for movie networks et al, but I can definitely seeing such a site becoming ridiculously popular.
This will be "NewTube's" real competition, so they better produce a superior product. It's more than half a decade and the music industry is finally brining a superior product over napster to the table (or at least a product that's a bit more comparable).
Flash video + Bittorrent
What if the interfacee fetches the videos from a bittorrent network. That'll be har to take down.