Their operating expenses in 2020 hit almost $20mil [0] and they only raise around $21mil in donations. In addition they only have $9mil in assets. That means they could potentially shut down if a hardline litigation strategy is persued. In addition, this opens the gate to additional litigation to any other potential claimant (eg. Warez copyright owners or video copyright owners - there is a lot of pirated material hosted on IA).
[0] - https://www.causeiq.com/organizations/internet-archive,94324...