The language is still dangerous though, because the designed for clause seems to open things up. I can easily see BitTorrent being brought in to be "designed for" downloading illegal movies, because judges aren't likely to think downloading linux distributions is very significant alternative use. The thing that concerns me is that smaller companies or companies outside of the mainstream might not get much credit for having other purposes. Imagine if reddit had r/stealmovies, a judge might not care much about the rest of it if there are thousands of people using it to talk about infringing.
There is enough wrong with this bill to oppose it without resorting to hyperbolic threats.
edit: Thinking about it more, youtube might be a great example. Current youtube won't be brought down with this, but youtube in it's infancy very well might have been stomped out. Imagine explaining to a Judge, "no, you don't understand. Right now it might be used for mostly unauthorized music videos, but showing home videos of cats is going to be HUGE!"