about iinet and the copyright case

I've been reading the news about iinet and its court battle with AFACT. What do you guys think about this? I'm afraid that even if AFACT doesn't win it will do a lot of damage because all the customers who do download movies are going to get paranoid and switch to a provider that isn't being scrutinized so carefully. They will all switch a competitor like Telstra.

Its really not fair that iinet is being singled out— are any of the other isp doing anything to stop illegal downloading?