Government anti-piracy "policies" are a case study in the 'follow the money' line of thinking. Basically, media companies refuse to rapidly move with the times and adopt new methods of monetizing their products. Sure, it is slowly starting to happen, but there is still a long way to go. (Eg: Think about how negatively the music industry used to view mp3. Now you can buy direct off itunes, telstra, or the artists site).
I have a T-Box which is a fantastic device as it allows you to watch new movies without leaving your coach. The $5 cost is added to your monthly bill. Yep, its $5 more than a free download, but it is a lot less hassle, and guaranteed good quality. This has actually lead to me d/l'ing less movies. Foxtel is available on the Tbox too. The channels are all there and streamed over the net (unmetered). So why can I not just pay to watch a GoT episode on HBO? Is it really that hard? Why do I have to get a monthly package, for 12 months? (Oh, the money thing again. $30/month times 12 = $360 divided by 10 GoT episodes = $36/episode. Yeah, I don't think so).
Media companies would rather force the govt to police the internet as they know there is no way that they can themselves.

Anyway what I really wanted to say was, from a computer POV, there is NO WAY that the government (or any other corporation or lobby group) can 'censor' the internet with the goal of preventing illegal downloads. There are simply too many ways around whatever restrictions are put in place. And many methods to hide your online activities.
Just look at TPB. And internet censorship in China.

I could on and on, but I won't. Internet censorship really, really pisses me off!


Disclaimer: The $36/ep thing is only an example. I really don't know any details on foxtel prices and packages.