It looks like the major (US) ISP's are going to try something that might actually work, after years of the content owners pushing for really stupid stuff that didn't help:
The agreement puts heavy emphasis on "education," going so far as to recast this behavior as some "right to know" on the part of parents unaware of a child's P2P activity. According to today's announcement materials, the goal is to "educate and stop the alleged content theft in question, not to punish. No ISP wants to lose a customer or see a customer face legal trouble based on a misunderstanding, so the alert system provides every opportunity to set the record straight."
It would be much easier to see "education" focus as a principled stand by content owners if they hadn't spent years suing such end users, securing absurd multi-million dollar judgments in cases that they are still pursuing in court. As it is, the shift looks more like a pragmatic attempt to solve a real problem through less aggressive measures after the failure of scorched earth tactics.
Imagine how much better this would have worked had the RIAA and MPAA gone with this approach right off....