I've been saying this for years: governments playing an arms race with hackers is like playing Whack-a-mole or cutting of heads of hydras. Every time you block one means of communication (starting in this case with Napster), a new, more decentralized, harder-to-combat protocol is going to emerge. Even if you're the MPAA and don't like copyright violations, you have to face that fact. That doesn't mean you (necessarily) have to throw in the towel and abandon the idea of copyright infringement altogether, but it does mean you need to start being creative instead of engaging in a direct legal-technological battle - an arms race.
I wonder how long it will take before the big players realize this and try to figure out a way to use this new playing field (the Internet) to their advantage, instead of trying to squelch any technological development so that they can cling to old models of payment and distribution. It was nice while it happened, but let's face it - we're past the point of no return. Even if they everyone hosted their own copies of TPB on their thumb drives and then they found some way to shut that down, I'm certain there'd be some hacker smart enough (like gojomo above) to come up with something that just makes things even less centralized, more difficult to track, and more difficult to shut down.