Sorry if I'm wrong, but I find that hard to believe. Any amount of CP is a problem IMO, but I don't think it's that bad. In my metropolitan area there's around 1,671,683 people, and I'd be surprised to learn there's 1000 honest-to-god pedos.
We have methods of rating each marker (e.g. how many CP files, how many are teen, child, nudity vs. intercourse, etc). Of those 200, there are a handful of the worst offenders that law enforcement will use resources to pursue, a group in the middle that have downloaded a large number where victims are 12-18, and then those who have just a few random files from the known list.
Does that help?
There is an interesting story in "Three Felonies a Day" where an employer discovers child pornography on an employee's computer. They contact their attorney, and the lawyer deletes the offending contact to protect the company. He then alerts authorities to the employee. The attorney is eventual prosecuted for evidence tampering. It's an absurd Catch 22.
There's a lot of time and resources spent in between the time of identifying that an IP address is broadcasting CP to having all the information you need to bust down the right door and lock up the guy for a long time.
Sorry if this is a dumb question, but what does that mean? There are 200 servers with that stuff in your city? If you know their IP can't you get a warrant and shut them down? I find it strange that the police know about so many people doing this stuff but don't do anything about it but maybe that's not what you mean? It seems pretty cut and dry if someone is advertising illegal stuff.