For example if I wanted lots of traffic I could sign up a domain name to be gogle.com, facbook.com, faceboo.com.

These are all typos of very popular websites and I can imagine that you would gain a lot of traffic if you did use those names. People would misspell facebook.com all the time and accidentally landing on your website, you'd get loads of traffic.

Do you think that'd work or could you get a law suit for copyright or something?

My URL is going to be like the word pixar which is well known, if someone misspells it they'll land on my website and it will generate more traffic.