There should be Anon Legal spamming these services with tons of links to real sites supported by RIAA as to make searching for any legal music useless through google. Because google complies with RIAA, an effort should be made to make for google to have it be too expensive to verify said claims and/or RIAA suffer from same tactics they employ.
I'm aware of that. That still implies that at some point Google linked to illegal material yet when requested, they removed it. Presumably HypedMusic could have had a similar deal.
Yes, a provider can follow the DMCA safe harbor procedures to facilitate the filing of DMCA takedown notices, and comply with those promptly. The details are outlined here: http://www.chillingeffects.org/dmca512/faq.cgi
Basically, a provider needs to provide contact information for a designated agent for DMCA takedown notices. Had Luke done so, and complied with legal DMCA takedown requests (as well as counter-notifications), he could have continued operating his service; however, that may have become considerably more work than he wanted to put into running the service.