Even if this bill passes, it would be as unenforceable as current copyright and IP laws are now. Yes, people do get caught doing stupid things, but that's usually because either a corporation keeps a close eye on new material (new Disney movies for example,) or someone gets ratted out. Even then, it's mostly the people who distribute the material, not download it (Napster was a peer-to-peer client where users automatically shared their content while they were online.) The only case I can think of in recent memory where individuals were targets for simply downloading material was a local case here where college students were charged with downloading music illegally using the college's internet connection; each student was fined $3k each.
As far as the government blocking sites and such for violation of copyright, to a point this makes sense, from a business point of view. Whether or not you agree with it, like that one politician said: corporations are people too, in the sense that the people who run them make their money from their corporation that they run. We are in a position to not give a flax because we make so much less than they do, but take it from someone who knows - they care very much about the money they make.
The problem with current copyright laws is that they are hard to enforce on an individual basis; case-by-case complaints are the only way to deal with IP problems on sites such as Youtube, outside of their auto-detection devices they employ. The only way around this is to automatically block sites that have the content on their servers.
Don't confuse this with the practices of other countries such as China or North Korea - they don't block content due to copyright problems, they block content they don't feel their population needs to see, which is different from protection against merchandise theft. (Downloading and copying music is illegal.) People commonly commit a logical fallacy in thinking that one reasonable action leads to another, unreasonable action. Will a bill pass to protect against theft? Yes. Will congress pass a bill actually does amount to censorship just because they passed a bill protecting against theft? No, of *Can'tSayThisOnTV*ing course not you god Dang nitwit, because we're not North Korea or China or any other communist/socialist country (against what most misguided Republicans would tell you, that's not what our country will ever turn into, and no I'm not a *Can'tSayThisOnTV*ing Democrat either, so save your anti-Democratic bullflax, thanks, god Dang it.)
Do I think corporations would make more money if all (or any) piracy was prevented? No. Do I think corporations would make more money if ever increasing punishments were sought against regular Joes for violations of IP rights? Outside of the litigation proceeds, no. Computers have almost always been able to communicate with each other in some form or another, they don't need the Internet to do so (though it does make it SO MUCH FASTER.) I remember warez BBS from the 80's and 90's (who doesn't) where you could download anything you want. Of course, try downloading the latest Call of Duty on 56k.
To tie that in, the distribution of music illegally predates the Internet, and was just as - if not more so - prolific than any MP3 distribution sites now. It's been possible since the invention of the tape recorder, and even better if it had a CD player that let you record to tape. Buddy of yours buy a new CD that you want? Borrow it and copy it. Library has the CD you want? Borrow it and copy it. CD burners have been around for forever; borrow a CD, copy it to hard drive, make infinite copies. Completely undetectable by law until someone turns you in for it.
These laws are realistically unenforceable, ineffective, and are enforced by draconian measures. Unfortunately, because people in power also have lots of money and love making even more money, these bills will probably keep cropping up here and there. Doesn't mean we need to freak out about it, but it might mean that on down the road you'll have to figure other, safer ways to steal your music. Just don't *Can'tSayThisOnTV*ing whine about your theft not being easy.
I haven't slept in two days, sorry if this was rambly.
