Keeping copyrighted content on a server for people to download is a million times worse. That is distributing pirated content. The way freeShop works, it just enables people to pirate if they so wish but does nothing illegal itself. Same as torrent websites and torrent clients. If any of those torrent websites ever hosted any of the files themselves and were in a country where they could be prosecuted, the owners would be in jail before they could blink. So, it's much better how it is!!!
And anyway, if you're worried about it - if someone leaves their car door unlocked in a bad neighbourhood with an iPad and a wallet on the front seat in plain view and they get stolen - you feel a little sorry for them but it's really their fault. And what about when they leave the door unlocked and put more money in the wallet every night? They kind of deserve it then, if they're that incompetent.