You're right that perhaps what the paper was saying was to radical to be really implemented but sometime radical things are need to bring change! You can't be paying over a billlion dollars for the music in a single ipod...
But in another sense, I'm saying something more about the memo; not only that it was inappropriate for its venue, but that its policy goals were dumb. The Khanna memo would not have made it any less fraught to run a consumer Internet company. It would not have prevented the content industry from leveraging potential bankruptcy against infringers. Apart from reducing copyright terms, it seemed to consist mostly of extravagantly costly political expenditures in the service of cosmetic goals.