I support FLV and video stream as a solution replacing video download, which is the format most of the Tube sites use.
I personally use some of those sites to put automated content on my pages allowing people to directly stream the content off there.
However, I do not support full length videos to be posted on such sites, which one of the common practices at Bad Jojo for example. There're clips with over 5 minutes of play time as well as full length videos split into several parts - that way the distribution method becomes no different than warez, P2P, torrents, etc.
If done correctly to the webmaster community I see no offense in this kind of sites. I personally think that PornoTube may be quite useful for skillful webmasters in order to bring new traffic to their sites or help add new content to their existing pages.
One of the things I like about Tube sites is that you can create FLV content for your pages, but if you publish it on a Tube site you get free hosting (if you'd rather link to a remotely hosted video) and extra exposure from the site's visitors.
There's and there will be more than enough free content. However, I don't think it matters nowdays. Savvy people have their ways to get full-length videos without paying - there're more than enough pass sites and mIRC channels out there for the looking, not to mention everything else.
Tube sites are just another version to display free content. From my POV it's the more advanced and up-to-day method to do it and I think that most of the users would prefer it, instead of browsing differently looking, unstandartisized pages. Not to mention the community features of that kind of sites, which IMHO seriously lacks on TGP and LinkList sites.
I jerk off quite a lot to know that it's much better to go and click 2 times to watch a video, that's going to start immediately and even if it's only 2 mins long it's much better than going thru tens of pages to find something fitting my needs
