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The ISP's that follow this route could potentially loose customers to other ISP's. If they loose say 10% of the customer base due to these actions they will notice it.
Let's just correct a few terms here. The people who are being labeled as "pirates" are actually consumers. The people who are trying to extort more money from them are the real pirates.
The problem is not with people downloading stuff... that is exactly what the internet is designed for. The problem is with people not willing to make stuff available for download because they are greedy.
People who use public trackers and p2p apps like Limewire deserve anything that comes their way.
Actually I wouldn't call them consumers. For what happens while and after a torrent is downloaded? It's shared to many others, making them far more than consumers.The people who are being labeled as "pirates" are actually consumers.
And people who are better at illegal downloading doesn't? I'm sorry, but that's a stupid thing to say.