This case continues to fall apart. New Zealand is, after all, a whole other country from the rest of the world. Isolation breeds individualism, and, well, judges can have their opinions, can't they?
The issue of intellectual property is one that affects people from all walks of life. If the Megaupload case collapses, and if the United States government ends up eating the costs of pursuing this case, then the taxpayers are going to feel the pinch.
The media companies have a lot riding on this as well. There is a tremendous amount of money and prestige on the line. You can set aside the fact that, yes, Megaupload was used to steal intellectual property and copyrighted material--the bottom line is that it will get harder and harder to protect the rights of people who make content.
Once people who make content realize that there's no point in making it, there won't be anyone other than nostalgia for everyone else left to steal.