This is not about protecting intellectual property. This is just another ploy whereby the industry is asserting its pressure on governments to give them the ability to carry out essentially extralegal proceedings against all of their users without recrimination.
As we can see from their comments, ISPs that do not help IP holders track down illegitmate consumers are villified for upholding civil rights such as the right to private correspondance. As far as I know ISPs are not required to do this for many more serious crimes that involve serious harm to people and society.
In fact this industry helped create the DMCA, even in the UK we're told it's illegal to copy our own DVDs. Even though this is false as it is covered under fair use exceptions of copyright law.
Essentially piracy is mostly a non factor for the entertainment industry. As long as it is moderately difficult to pirate material it will not be done by the main consumer base. People who actually pirate goods are unlikely to have purchased them in the first place. This whole 'lost revenue' idea that the industry pushes is largely false conjecture.
Fortunately companies are starting to roll back DRM since it's unpopular with the legitmate consumers who wouldn't pirate anyway but are pushed to it by severe digital restrictions. I wonder what will happen with HD given that it's protected with both hardware and software loops, people have already broken these but when the average person finds that they can't record their favourite HD programme or it's deleted after 24 hours they won't be pleased.
My best advice, fight them with your wallet, don't buy games/music/ films from these bastard companies. Play more free indy stuff and give the two fingers up to the industry and more importantly the blood sucking lawyers who work behind the scenes.