I think they have got this new law spot on.
People who shoplift only get a caution along with other more serious crimes, so this will work the same way.
It would be a bit unfair if illegal downloaders where punished straight away, when other criminals get let off with a warning.
I'm sure there are people who download illegal files who have never committed any other crimes and actually don't see it as such. A warning letter is a good way of awakening them to the seriousness of it without going overboard.
And if they ignore the warnings, which i'm sure most won't, then more fool them.