>they should have stood firm or offer up the 'Oh no we couldn't possibly figure out how to do that, it's entirely too complicated, you wouldn't understand.' excuse all other tech companies put out whenever they are told to do something trivial.
Here in the UK, that's basically what BT said back in the early days of rights holders trying to block this stuff.
The rights holders took them to court and managed to get the court to order them to use Cleanfeed (a system that was only used, at the time, to block Child Sexual Abuse Material) to block Newzbin.
Not only did it help kick all this off but, overnight, it meant there was a socially acceptable reason for people to share knowledge on how to circumvent Cleanfeed.
The rights-holders give zero shits about the collateral damage they create with stuff like this