R4 Distributors Fined over $900,000 in Damages to Nintendo, Konami, Capcom and more

$22,000 dollar on average per company. Is that really worth it? Has the war on copying really led to nicer consumers, bigger budget games and less organized illegal crime?

Is Nintendo on the right track showing their muscle to anti-corporation terrorists while at the same time expecting this from their loyal, well-intended customers?

"...By accepting this Agreement or using a Nintendo 3DS System or the Nintendo 3DS Service, you also grant to Nintendo a worldwide, royalty-free, irrevocable, perpetual, non-exclusive and fully sublicensable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, perform and display your User Content in whole or in part and to incorporate your User Content in other works, in any form, media or technology now known or later developed, including for promotional or marketing purposes."
(Chapter 1, Nintendo 3DS End User License Agreement)

Something seems amiss here. or is it just me?