To borrow your phrase, I'm sorry to burst your bubble but this is very much a non-issue.

What they are doing is akin to trying to "boil the ocean". It will never work unless they actually do manage to pass the COICA (The Combating Online Infringement and Counterfeits Act).

Right now all they can do is try and bully people into paying a fine for illegal downloads from P2P networks. Even that has been backfiring lately. Sometimes they hire firms to scour internet forums and issue DMCA takedown notices but everyone knows that is a losing proposition at best. They issue a takedown notice, the website owner takes down the post and then the next day someone else reposts it. It's really a huge game of Whack-A-Mole. Swat down a file over here and it pops back up over there. It's actually getting worse for them to because the small victory these porn companies and the RIAA had in taking down Rapidshare (and even that took over 4 years) only caused 5 new services to start up and, emboldened by RS (the former top dog) being out of the game, these new services started to offer cash for traffic. So now RS is out but Hotfile, SharingMatrix, Fileserve, Megashares, MegaUpload and others are going even stronger. See? It's a game of Whack-A-Mole.

The RIAA hilariously hired some company to DDoS some of the torrent sites and that brought 4Chan's fury down upon them with disastrous consequences. Seriously? DDoS attacks? Tell me that isn't a last ditch effort!

The sharing is all growing exponentially too. With more cash payments offered, there are even more people sharing files in an effort to make some money at it. The porn companies would need an absolute army of full time employees to police the forums, blogs, and websites to even begin to keep it under control and that would be very cost prohibitive.

They try and scare people by saying file sharers will be exposed and embarrassed for downloading porn but the only embarrassing thing is that people are stupid enough to download from P2P networks where your IP address is clearly on display for these IP recording companies to document and give to these companies.

I'll let the idiots that still use torrents and Limewire take the fall and pay the fines to keep these companies feeling like they are making a dent in file sharing.

Further fun reading: