1) No, a torrent doesn't per definition define it's content as 'illegal'.
As I understand it, torrent technology was originally designed/intended to move/download larger than average files more quickly by breaking it down into smaller, more managable pieces. For example; although they opted not to use it, Microsoft could have used a torrent client to distribute the publice betas of Vista and Win 7. I guess, though, like any other technology, there will always be somebody who will find a way to use it for illicit means.
2) Up untill only a few weeks ago Mininova was one of the largest illigal torrent sites on the web.
That may have been so, but the piece I read said that Mininova now only hosts content uploaded/provided by the IP owner. It seems that quite a few up and coming musicians, as well as those tired of the mainstream recording industry are using torrents to distribute their tunes... as do independent film makers and those not contracted to major studios. Sounds like a brilliant idea to me, artists gain exposure and the public gets to see/hear content and talent it might otherwise miss.