I'll just add my two cents on this whole situation:

I am extremely grateful to all the fansubs, even if some of them can be horrible. They provide a free service to people like us and don't even ask for money. This is practically charity, although in an illegal way (but who really cares about that? If anyone did, we wouldn't have subbed anime).
With the whole NarutoFan thing, I'm siding more with Assertn. Yeah, Tazmo shouldn't be making money from the work of others. It's not only Naruto, but.... whoa, so many of them.... NarutoFan PLUS Anime List
Right now, I'm reading his NarutoFan PLUS welcome statement, and it seems ridiculous.

"Our goal was simple; provide the very best quality for the lowest price possible!" --> Lowest price is free, which BitTorrent does. If you want to be true, make your direct downloads free.

"Don't pay $10 a month, don't even pay $5 a month at other websites with inferior service, with NarutoFan PLUS! you get access to hundreds of gigabytes, and thousands of files stored on over a dozen servers running 24 hours a day and 7 days a week." --> Again, refer to BitTorrent. Although direct downloads are great, why bother paying when you can download something for free? You just have to be more patient with torrents, and we all know that "patience is a virtue".

"We invite you to look around the website to see what you can have access to for mere pocket change a month, don't fall for the other guys who charge you way more, for way less." --> Other websites? In the 2.5 years of being an anime watcher, I have NEVER seen any other site that charges money for downloading anime or anything like that AT ALL. But then again, I have never bothered with direct downloads or whatever, so i could be biased on this part.

EDIT: I just saw in the Anime Downloads section that there are several websites that provide FREE direct downloads. It just requires a sign-up.