Here’s a blog entry about it from another scanlation group. They also suggest an idea I support. I believe manga should be available in electronic form and I believe the Japanese publishers should pay for translation services from folks like me so they can have near real time translation of ALL of the manga series in English. I believe you all should be paying some small amount (or be subjected to advertisement) to read your favorite manga series so mangakas can continue to bring you great stories and art and translators can earn some money to continue translation (rather than doing it during his or her spare time).
Here’s a link to the blog entry: Link
Here’s a like to a different blog entry: Link 2
As long as the publishers refuse to give their world-wide audience what they want, scanlation will continue and money will continue to be left on the table.
A comment, though, on raws. I don’t provide raws because for those folks that do read Japanese, that would be straight up piracy — it’s like scanning a licensed translated manga book and posting it. And in that respect, I agree with Shuseisha. Posting manga raws most likely does materially hurt them inside of Japan.
I purchase all of the materials I translate, and trust me, it’s not cheap. However, because I do this, I’m not dependent on a raw provider. But still, I will not have early access to Ouran raws anymore and I really don’t mind because those raws were not of very good quality.
Anyhow, I make a plea to you all once more: when a series becomes available in your country, please purchase the books if the series is truly one of your favorites. Support your favorite mangakas and support manga in general. Hopefully, soon the Japanese publishers will get a clue and make this a winning situation for themselves, translators, and world-wide fans.
The Crimson Flower Blog 
Woha! I wake up and BAM! Raw Paradise was shut down!, I need to read more about the whole issue before commenting on it, but the general picture i get from reading your post is to prevent pirating their releases (kinda similar with the Nintendo and the 50-some japanese companies' fight with videogame piracy).
But (like videogame piracy) no matter what, it WILL CONTINUE, because pirates, just want to get their videogame/manga of choice for free, and will not pay for it even if it was available to be purchrased by them.
Well i would agree that raws these days are very picky when it comes to raw providers making harsh decisions. Some only posted it on famous series such as naruto, bleach & onepiece (mainly these series i would doubt that it will never stop). But i would happen to a agree at some point that not every country can buy the raw magazines like Shonen Jump or Monthly gangan cause only certain shops (or country) accepted them to sell it to the market. I live in malaysia, the only way i can be provided with raws is Kinokuniya Book Store which is only located in KLCC. Im the average browser to see that only Shonen Jump, sunday, dengeki daioh, Shonen Joker, Shonen ace, and some few shoujo manga is available and im surprise that Gangan and some few others is not. Volume series is available but to only limited quantity (like some interesting titles only sells 3 volumes). Thats why i only resorted to raw sites to get my daily updates series. To all manga publishers, im sorry but this is the only way i can enjoy your work.