these days people get music from spotify ($$) and similar services, not from torrents ($free). I'd say centralized won.

When I did torrent, I would frequently get warnings from content owners by way of my ISP, so at least identification of offenders seems to have scaled. They didn't take me to court personally, but some other end users were compelled to settle, and even the threat of punitive measures should be enough to discourage many others. So overall I don't agree with your characterizations.