Please, if you are already here to flame me, or anyone else specific, I ask you not to do it here. I want a serious discussion and I want to know what other people do think. Thank you in advance.
It saddens me that someone could be so afraid of starting a thread here. Most of the (potential) flames and trolls you speak of probably come out when any of the utter crap that comes here on a daily basis through alternate, 1 post wonders is posted. I have posted quite a few serious threads here that have received great feedback from the members here, I would hope that others would have a similar experience. You can always report them if they severely derail from the thread.

As to the rest of the topic...

Sez brings up a good point:

Our version of morality aside,I've come to look at torrent sites as I do non-profit organizations.

The goal of a non-profit is to not make profit i.e break even after covering all costs.As you know,most of these organizations will have people actively volunteering but not everyone working for them is necessarily a volunteer(plumbers,electricians,guards)and you also have the white collars like the finance people that you'll actually have to put on a payroll.
I would separate the idea of "profiting" into four categories:

1. The best, using donation money purely to fund servers.

2. Using the money to cover server costs and the fund yourself the potential money you "lose" from countless hours of coding and administration.

3. Creating a torrent site purely as a business venture to generate a source of income from donations.

4. Selling pirated DVD's on the street (And deceiving people into believing that the DVD is genuine).

How exactly do we differentiate between one and the other? Specifically, how would be able to tell the difference between 1, 2, and 3? When do we know when others are really profiting, or what there goals were when they started the tracker? Is the concept of 2 somehow "better" than 3? Would simply giving yourself a little compensation for all the hours you put in a tracker be ethically "better" than creating a torrent site with the sole purpose of profiting from it? And is creating a business out of a torrent site any better than simply selling DVD's on the street? Which of these are more "ethically" correct?

The one thing I can concretely say from this is that torrent sites take a lot of work. The hours of coding, finding trustworthy administration, server costs, questionable legality, all make this an extremely risky endeavor. Is it too naive to assume that staff wouldn't take a little money for themselves? When people claim of profiteering, do they mean it is unacceptable to even take the smallest amount for yourself, or is just unacceptable for the sole purpose of the site to be something to profit off of?

As to the lack of innovation on new torrent sites - at first I had believed similarly to you, that the reason new and upstart trackers are failing is due to having far too many 0day trackers. But the more I think of it, the more I realize that Private BT as a whole is becoming far too saturated. Even what we used to have considered as niche sites - games, movies, tv shows, music, even elearning (something I never imagined would have been as popular as it seems to be) are becoming extremely saturated. There are literally dozens of those sites popping up every month or so, popping off as they die from lack of activity. Not only is there no room for 0day sites, but these niches seem to saturated as well.

So what's the solution - fulfill other, more obscure niches. But the more obscure you get, the less people you will find that are interested in that niche. And the smaller the userbase, the more stagnant the activity. A niche tracker also depends the most heavily on user uploads as well - exacerbating the problem even further when your userbase is small. Perhaps thats why so many 0day trackers pop up - because its a broad category everyone can be interested in, so you'll always find a potential userbase (but of course now that there are so many, that point is pretty much moot). Unless a tracker comes up with something extraordinarily revolutionary and has a massive userbase to back it up, I don't see successful torrent sites popping up in the next few months.