You can't be serious when you claim that illegal streams raking in tens of thousands to hundreds of thousands of dollars for popular sports through plague like ad banners are the innocent party that should be allowed to operate freely.
Why not punish all the ad networks that, in retrospect allow their ads to be shown on these illegal streams? Don't they have an obligation to ensure their ad models aren't supporting illegal businesses?
The dual standards by intelligent tech workers who should know better is one of the biggest shames of our time.
The internet is a vast ocean of interdependencies, its not like the tangible world, as such, it requires different strategies to combat. This is why the software gaming industry is flourishing and not declining because someone decided to work on the problem from the point of the service, and the rest followed suit.
But leaving that aside, the existence of illegal activity doesn't automatically justify arbitrarily severe measures to suppress it. With pretty much anything, there's a line that we draw and say, "this is what you can use to enforce it". The measures that were proposed above are way past any sensible line in a free society, especially for a strictly economic crime.