No, it's not! Downloading anime is NOT illegal unless you're in Japan or if the particular title is licensed in your territory.
Let us be reminded that a few years ago, an American anime company tried to claim that people were "pirating" anime by the thousands. Guess what happened. That company lost the case. The judge presiding over the court case said that the anime company didn't own the original licenses to the anime he was claiming were being pirated. The original licenses belonged to the Japanese companies. Considering that most Japanese companies are only worried about Japan, Americans downloading anime is a non-issue. So, those who are concerned, quit hurting your face over it.
I just revamped a few things on the affiliates section. Now its possible for people to add their own sites to the affiliates and possibly earn a few extra hits. Heck, why not? If you have an anime site you'd like to get some exposure, join my affiliates and reap in the benefits!