Similar stuff happening over here in Europe where some developers ordered lawyers to mail "shotgun blasts" of letters to "potential filesharers" offering the "pay a fine now or go to trial" deal.
There was a huge scandal about that but the practice is still ongoing. Some lawfirms even specialize in it.
Basically if you are not insured you are rather screwed if you happen to get such a letter. Easier to pay than to get a good lawyer... without financial backup. (Who may even just advise you to pay if the fee isn't outrageously high, instead of risking the cost, effort and unsure outcome of a trial.) If you are guilty or innocent doesn't really matter all that much at that point.

The point is... the current status quo is hardly where it stops. They (i.e. lobby) are not really interested in finding out if someone is guilty or not. They are interested in a) making money and b) setting examples, the harsher the better.
See, i completely agree with you that pirating is illegal and that it should be punished. What I disagree on is the ridiculous penalties (compared to other crimes), the double standards/hypocrisy (companies who lobby for harsher anti-piracy laws actually pirating themselves and selling the songs for profit) and the slippery slope that the legal system appears to be going down with the DOJ being dominated by Ex-RIAA lawyers.
Now look, on the issue of WiFi... every WiFi AP i've ever seen records the MAC addy of any device that attaches, and some times attempts to attach, itself to the network. Thats pretty damn easy to prove weither or not the device was yours. MAC addys are unique. Sure, they can be spoofed, but the likely hood of someone spoofing a MAC addy of a device that you own is even more slim than me building a rocket and heading off to the moon. Anyway this arguement is pointless... a million and 1 different things COULD happen... theres always potential for disaster and success.
Playing devils advocate: If they don't need the harddisc in that case why would they require the device that logged into your Wifi? You never owned one? Well maybe you trashed it because you were worried you got caught!
So what do you suggest? we all run and bury our heads in the sand until its all over? Maybe we should just drop the interwebs all together, then theres no way you could be falsely accused of piracy.
Not that it will happen... but the RIAA would certainly be cheering if the Internet would suddenly die off. Kidding aside... what I would suggest is, for starters, to think very hard on whether you really want to agree with/support the people who are lobbying for harsher and harsher anti-piracy laws (and commit piracy themselves as part of their usual business.)
No one said that innocent people havent been or will be wrongly accused of a crime. Mistakes happen, fact of life. Thats why there exists a court system. Is it perfect? no, of course not, but until someone comes up with something better, its what we got.
The purpose of a legal system in a state of law is not to convict criminals (That would be a police state/totalitarian regime, but not a state of law). It's main purpose is to protect innocent citizens/legal entities from crime.
That includes protecting innocent citizens/legal entities from having their property stolen. It does not include treating certain citizens/entities differently because they have more money and/or putting their interests above anyone elses,... but that is basically what is happening.