Isn't that replacing one dubious service with another though? Right now, I'd imagine that something akin to Amazon S3 is the only reliable solution, and even then I bet they have their fair share of infringing material stored.
It's quite the rabbit hole the FBI have gone down with this action.
Removing links isn't the same as removing content.
With most services like MegaUpload/Rapidshare you get paid when people download your files, hence their popularity, its a business for a lot of uploaders.
For $10/month you can easily get a VServer with 20 GB disk space or more. For $50/month you can rent a Dedicated Server with 2000 GB hard disks. (... assuming that someone who works with embedded linux images has no problem with installing a tiny webserver and making regular security upgrades)