It's much, much worse than what you describe. They are seizing domains based on the preference of a private entity. There is no allegation of criminal infringement against dajaz1.com -- not even a little bit.

This is not an issue of harassing minor offenders, this is an issue of harassing those who have not offended in the slightest. Who are guilty of nothing more than saying something (in the form of links) which the RIAA does not wish to hear.