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Seems like a better idea, but it has it's flaws. But it does prove one thing, the MPAA and RIAA don't give a crap about due process they would rather just be able to control the internet and not have to deal with actually defending their copyright and proving that others are actually stealing from them.
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Actually, they'd rather be able to control
everything and has nothing to do with the Internet in particular except that it is a new territory full of opportunities and which look like an easy target because it is not really defendable with normal laws as we are dealing here with non material products while normal laws are written in such a way that only material products are protected.
Also... That's pretty basic strategy for any serious company.