Hollywood wants to control the sense of sight.
I've said this before, and I'll say it again. Media giants have no real interest in pirates or file-swappers. That's just a smoke-screen. The real goal is to lock content creators into industry controlled distribution systems, giving them a perpetual revenue stream from both creation and consumption.
Maybe the real goal is to restrict camcorders so that home movies can't end up as high-quality torrents. Perhaps home movies will be marked for limited distribution (say, within the family); anything beyond that will be deemed commercial film production, and require a union card from Hollywood.
This is within the scope of "Analog Hole" legislation; after all, as long as people can point a camcorder at a screen, they can pirate stuff (or so Hollywood can claim).
It would also make sense for Hollywood to be concerned about this: like all middlemen, they're threatened by the disintermediating effect of the Net.