OK, there is a lot of panicking and FUD here, so perhaps some perspective is in order, along with some simple facts:
FUD: You can use your neighbour's unsecured wireless.
Truth: Then they will be banned and you will lose your free link. Eventually you will run out of free links.
FUD: You can claim your wireless must be insecure / hacked.
Truth: This will work at most once, so you get 4 strikes rather than 3.
FUD: RIAA need to deep scan your packets to see what you are downloading
Truth: They just need to seed a file / check a seed and then see who is downloading it.
FUD: ISPs care about their customers.
Truth: They don't.
FUD: It is a bad business plan for ISPs to disconnect users
Truth: Not really. I think ISPs would love to be able to wash their hands of the large downloaders so that they can provide more aggregate bandwidth to other users without having to spend any more money. Especially if they can then blame someone else. They are also making sure there are no grounds for the RIAA to sue them.
FUD: They can't sue / catch everyone.
Truth: They don't need to. They need to successfully get a few people kicked off and then make a big public show of how they are winning the war against the evil pirates. Then they tell congress how much tax revenue this will generate and congress will roll over and sign any laws they want.
Although the RIAA are plainly scum and using plainly obscene methods to protect their protection racket the only way this is going to end is if people stop mass downloading illegal movies / music / games. Sure the providers need to change their business model also, but there is potentially too much money at stake here for the affected companies to just roll over and let it go.
Remember children, downloading music is bad, mkay. and downloading films is bad, mkay. and downloading games is bad, mkay.