I'm pretty confident they'd like to but it's a tricky problem. Based on this article, they're downranking based on number of legit DMCA requests - the good sites will generate a lot of signal on that front. The bad/malicious sites won't.
The malicious/scam sites usually come and go quickly, so it's hard to learn which ones they are - if you figure out one site is a scam, and a new one pops up.
A real solution would require being able to make an automatic judgement about whether a site is bad/malicious based on the content of the site, but that's really hard, and it's really bad when you get false positives, so you have to be super conservative about it.