I think this can only be the first step. I also have a B&M store and people are shoplifting. I want the road departement setting up checkpoints at every corner, searching people that come and go for goods that might be stolen. Same goes for mail. Parcels and letters could be automatically searched for stolen goods and such.
Now honestly. I don't see any reason at all ISPs should start policing internet traffic because little Susi Brainless from next door is downloading Justin Bieber songs without paying.
In all business you loose money to fraud and thieves. Tough luck.