Is Morpheus/Limeware legal?
Of course downloading and running the software itself is legal. And, as a user friendly aid for the FTP challenged, it has it's legitimate and legal applications. Which is why the courts got it WRONG and why Shawn Fanning should take his case all the way to The Supreme Court. Napster (or any other file sharing app for that matter) is no more illegal than the thousands of FTP server and client apps that are sold/downloaded everyday in the US. Or, for that matter, PCAnywhere. or even the file sharing client built in to every Windows release since 2000. And I don't see the courts in any rush to shut down the developers of Serv-U or CuteFTP. Much less M$! P2P apps are no different. And I can think of a thousand perfectly legal uses for the software. The collusion between the RIAA, the courts, and local/federal law enforcement in shutting down P2P software developers rates as one of the most blatant abuses of legal power in recent memory. And if 'Joe Average' understood the wide ranging implications of these decisions, the outcry would be huge.
Is downloading/sharing legally copyrighted material with your peers legal?
Duh. Didn't the Napster ruling kind of settle that question? It's the high tech equivalent of the bootleg record scene of the 1980's.
BUT...that doesn't change the fact that the software itself is NOT illegal nor SHOULD it be. Software development is NOT a crime.
Bow down lemmings! Bow to your government overlords! DARE not question their judgement!