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Yes, but it seems like people are overlooking the fact that by the nature of LW's business model, they want/need to keep a good relationship with the game publishers. Paizo, et al. don't have to call the lawyers or invoke threats of lawsuits. All they have to do is revoke their licensing agreements and 'poof', LW will go up in smoke. How many copies of HLC or HLO will they sell if all the content has to be manually entered by the end user? (Which you can't even do yet with HLO.)
They have to keep the publishers happy. Bootleg content showing up in LW's managed content market will not be looked at favorably. And, safe-harbors aside, LW won't have the option of just shrugging their shoulders with a casual, 'Eh, end users, what can you do?'. And depending on volunteers to protect your business is not how you run a successful business.
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