http://movies.io/ ? Sounds familiar?
Going legit is too much trouble. The world of licensing is way too complex and antiquated - and we would've been forced to adopt DRM, which is a step back, in my opinion: http://amos.me/blog/2012/vision/
So, in short, movies.io's not going away, and yes we're keeping torrents.
Pretty much every movie out on video is available via one of the online platforms (currently iTunes, Amazon Instant, Netflix, and Redbox), but availability outside the US is still frustrating.
I'd rather have you help us integrate it with movies.io - but you know that already :)