Guilty or not guilty, he will have his day in court.
Considering the nature of the charges, if he doesn't present a danger to the public, he shouldn't be locked up.
House arrest should be the maximum control over him, if they're concerned about flight risk.
It's sad that gang-bangers, violent mentally ill, and career violent criminals seem to get bail on a whim throughout the Western World, but because a money gouging industry in Hollywood is so obsessed with every imaginary nickel extra they think they could make, they've convinced (paid off? Extorted leverage?) governments around the world to be their minions and do their bidding.
I don't use the services of Pirate Bay, but anyone that can't see that this guy is being unfairly bullied by an interfering government has their heads up their butts!
Kim DotCom doesn't deserve to be in jail right now. The Pirate Bay's co-founder should be a free man for distributing files around the globe. DotCom shouldn't be responsible for what the users of the site have done with the file sharing service. Therefore, he should be freed from jail.
Writers and artists spend hours and hours creating intellectual property. Demanding access to their work for free is akin to your employer asking you to work for nothing. Or if someone wanted something you were selling and demanded you simply give it to them without paying you for it. If you did the work on a project for your boss, are you going to be happy when someone else takes credit for what YOU did? Likewise, when an artist or a writer is selling their work, pirating it is no different than those examples.
Can I walk into YOUR place of work and take whatever I wish and not pay for it? Why then should people who want copies of IP be allowed to do just that by pirating?
Simple answer: they shouldn't. People who develop IP have a right to be paid for their efforts (within reason of course).