This is planned failure. Robert is right, only innocent infringers are going to be harmed by this. Anyone who knows what they are doing will sign up for VPN services and won't be detected by the new system. Once several thousand innocent infringers are harmed by this, things will change.
Oh Team Ellis, don't get too excited, you don't get to report the IP addresses of people you suspect are doing something wrong -- that is done by a system set up by the largest providers of digital entertainment (Disney, etc.). You won't be part of it. So, that plan of yours to report ELI's IP address 752 times won't work as you are outside of the system.
Of course you can also set people up with the new system. If I know the external IP address of say a neighbor and I know they don't reboot their router very often, I can spoof their IP address, download illegal content through Bit Torrent for a few months and get the neighbor in big trouble.
Also the software used to identify copyrighted content is fundamentally flawed.
Oh and you have to love Verizon's plan to allow you to pay $35 to challenge a claim. So, not only are you guilty until proven innocent, you have to pay $35 to say "not guilty".
Oh and wait until 23,745 Starbucks get their internet service shut off because people use their WiFi to download movies.
This will be a train wreck and eventually shut down. Unfortunately some people are going to get hurt in the process.