There are 3 main points I suppose:
1) Is the Law "good"? I say no.
2) Are WxC's rules in particular a fair interpretation or application of the Law? I say no but that is largely compounded by my view of (1).
3) Is the current impact of an account termination fair punishment for the action? I say no. There should be more customer relations options and more technolgy based options that involve service restriction rather than cancellation. This could allow WxC and other ISPs to avoid losing customers (even if they are doing P2P, they are assumably still paying money), and for customers to avoid being left in the IT dark.
However the first two points arent really for this thread so I am sorry for being so verbose about them. The third one is.