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> IA will let you download full video games for the switch that are still being actively sold

That's a weak argument that is the same as saying "BitTorrent is bad because you can download illegal stuff" or" file hosters should be banned because I found $illegal_thing on this one"

Yes, a free upload service will get abused. And yes, they are very quick to take these kinds of warez downloads offline when someone notifies them.

That example isn't the same at all. BitTorrent is just an application for torrenting. It isn't an organization centrally hosting content like IA is. Both Megaupload and Rapidshare are much more similar examples of sites that allowed anonymous distribution from central servers. Megaupload was taken down and Rapidshare ended anonymous file sharing after the Megaupload takedown.
MEgaupload and Rapidshare were taken down because they ignored takedown requests from rights holders and just gave them the middle finger. That was obviously a very bad idea. OTOH all the hundreds of free file hosters that exist today don't get into trouble, simply because they take stuff down when notified.